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The Impacts of Covid-19 Pandemic on Socio-Economic Mobility in Indonesia

Nano Prawoto, Eko Priyo Purnomo and Abitassha Az Zahra

International Journal of Economics & Business Administration (IJEBA), 2020, vol. VIII, issue 3, 57-71

Abstract: Purpose: The purpose of this article is to examine the impacts of the COVID-19 pandemic on social and economic mobility occurring in Indonesia. The research illustrates that the effects of the pandemic are strongly felt in mobility in the socio-economic sectors. Design/Methodology/Approach: To give answer to the research question whether COVID-19 pandemic has impact on socio-economic mobility in Indonesia, firstly, we review the literature to find out what different scholars have found in recent researches concerning this subject as well as the current issue and the methods and models used in collecting, processing, and analyzing data. The processing of the data of the above-mentioned reports has been done by SPSS software program, specifically using regression. Findings: The possible impacts caused a decrease in socio-economic activities and reduced community income. The results of the correlation analysis showed that there was a strong relationship between a pandemic tested positive for COVID-19 and mortality rates with socio-economic conditions with an average correlation coefficient above 0.80. Practical Implications: This paper will provide a detail analysis of the impact of COVID-19 on socio-economic mobility, with this impact, government policies relating to human life, economic policies to increase state expenditure (government expenditure), and tax incentives must be made. Furthermore, monetary policy that can accelerate the increase in production by reducing the cost of production through the cost of capital and reduce energy prices becomes an essential choice. Originality/Value: This research paper highlights an empirical analysis based on real data of socio economy mobility in Indonesia.

Keywords: COVID-19 Pandemic; Socio-economic mobility; correlation coefficient. (search for similar items in EconPapers)
JEL-codes: J4 E20 (search for similar items in EconPapers)
Date: 2020
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Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:57-71