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The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia

Author

Listed:
  • Abd Azis Muthalib

    (Department of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,)

  • Pasrun Adam

    (Department of Mathematics, Universitas Halu Oleo, Kendari 93232, Indonesia)

  • Rostin Rostin

    (Depertment of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,)

  • Zainuddin Saenong

    (Depertment of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia,)

  • La Ode Suriadi

    (Depertment of Economics, Universitas Halu Oleo, Kendari 93232, Indonesia.)

Abstract

The purpose of this study is to examine the influence of fuel prices and unemployment rates toward poverty levels. The data used were yearly time series data consisting of fuel price, unemployment rate, and poverty level that span from 1998 to 2017. To test the influence of fuel price and unemployment rate toward the poverty level, the autoregressive distributed lag (ARDL) model was used. . The results of data analysis showed that in the short-term, there is a negative influence of fuel prices toward the level of poverty. Meanwhile, there is a positive influence of unemployment rate on poverty level in the long-term. In this case, every 1% increase (decrease) the unemployment rate, the poverty rate rose (down) by 33.09%.

Suggested Citation

  • Abd Azis Muthalib & Pasrun Adam & Rostin Rostin & Zainuddin Saenong & La Ode Suriadi, 2018. "The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 37-42.
    • Handle: RePEc:eco:journ2:2018-03-6
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    References listed on IDEAS

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    Cited by:

    1. Canavire-Bacarreza, Gustavo & Gayoso de Ervin, Lyliana & Galeano, Juan José & Baquero, Juan Pablo, 2023. "Understanding the distributional impacts of increases in fuel prices on poverty and inequality in Paraguay," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 39, pages 77-108, Mayo.
    2. La Ode Saidi & Hasan Aedy & Fajar Saranani & Rosnawintang Rosnawintang & Pasrun Adam & La Ode Arsad Sani, 2020. "Crude Oil Price and Exchange Rate: An Analysis of the Asymmetric Effect and Volatility Using the Non Linear Autoregressive Distributed Lag and General Autoregressive Conditional Heterochedasticity in ," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 104-108.
    3. Manat Rahim & Pasrun Adam & La Ode Suriadi & Zainuddin Saenong & Ery Atmodjo & Wali Aya Rumbia & Irma P. Tamburaka, 2018. "Causal Relationship between Electric Consumption and Economic Growth in South East Sulawesi," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 29-34.
    4. Rosnawintang Rosnawintang & Tajuddin Tajuddin & Pasrun Adam & Yuwanda Purnamasari Pasrun & La Ode Saidi, 2021. "Effects of Crude Oil Prices Volatility, the Internet and Inflation on Economic Growth in ASEAN-5 Countries: A Panel Autoregressive Distributed Lag Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 15-21.

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    More about this item

    Keywords

    Fuel Price; Unemployement Rate; Poverty Level; Autoregressive Distributed Lag Model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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