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


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Authors

  • Abd Azis Muthalib Universitas Halu Oleo
  • Pasrun Adam Universitas Halu Oleo
  • Rostin Rostin Universitas Halu Oleo
  • Zainuddin Saenong Universitas Halu Oleo
  • La Ode Suriadi Universitas Halu Oleo

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%.Keywords: Fuel price, unemployement rate, poverty level, and ARDL model.JEL Calassifications: C220, E310, I32, J64.

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Published

2018-05-08

How to Cite

Muthalib, A. A., Adam, P., Rostin, R., Saenong, Z., & Suriadi, L. O. (2018). The Influence of Fuel Prices and Unemployment Rate towards the Poverty Level in Indonesia. International Journal of Energy Economics and Policy, 8(3), 37–42. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/6233

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