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http://dx.doi.org/10.13106/jafeb.2020.vol7.no8.681

Economic Strategy: Correlation between Macro and Microeconomics on Income Inequality in Indonesia  

SALIM, Agus (Department of Islamic Economics, Faculty of Economics & Business, Universitas Muhammadiyah Makassar)
RUSTAM, Andi (Faculty of Economics, Department of Management, STIE YPUP)
HAERUDDIN, Haeruddin (Faculty of Economics & Business, Department of Taxation, Universitas Muhammadiyah Makassar)
ASRIATI, Asriati (Faculty of Economics & Business, Department of Economics Development Studies, Universitas Muhammadiyah Makassar)
PUTRA, Aditya Halim Perdana Kusuma (Department of Management, Faculty of Economics and Business, Universitas Muslim Indonesia)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.8, 2020 , pp. 681-693 More about this Journal
Abstract
This study sees a critical gap in the previous body of research, which it seeks to fill; the disclosure of the unemployment ratio correlation has only been measured by the level of economic growth. This study is to add investment variables and government expenditure variables that objectively aim to measure the level of effectiveness in handling the unemployment ratio, which is then a measurement of the effectiveness of unemployment. Economic growth is measured by its impact on income inequality through empirical, conceptual relationships as a critical review and economic strategy for the future. The research uses secondary data on Indonesian macro and microeconomics since 2003-2018, then testing uses a quantitative approach to correlation, regression, and scatterplot. The results of this study show correlations between variables, and volatiles on the graphs show a similar trend. In other words, variables are bound together and support each other. The strategy of prioritizing the scale of government expenditure and investment to reach the target is the primary concern, so that the economic cycle can be optimal and equipped to face the possibility of an economic recession in the future. Many factors cause complex income inequality, though investment does not show a correlation to income inequality.
Keywords
Investment; Government Expenditure; Economic Growth; Unemployment; Inequality Income;
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