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

Abd Azis Muthalib, Pasrun Adam (), Rostin Rostin, Zainuddin Saenong and La Ode Suriadi
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Abd Azis Muthalib: Department of Economics, 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.

International Journal of Energy Economics and Policy, 2018, vol. 8, issue 3, 37-42

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; Autoregressive Distributed Lag Model (search for similar items in EconPapers)
JEL-codes: C22 E31 I32 J64 (search for similar items in EconPapers)
Date: 2018
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