Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247954 
Year of Publication: 
2019
Citation: 
[Journal:] Verslas: Teorija ir praktika / Business: Theory and Practice [ISSN:] 1822-4202 [Volume:] 20 [Publisher:] Vilnius Gediminas Technical University [Place:] Vilnius [Year:] 2019 [Pages:] 1-10
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Two closely watched indicators of economic performance are inflation and unemployment. This study empirically analyzes the causality between inflation and unemployment in Indonesia during 1984 to 2017. The data were gathered from the Indonesian Central Bureau of Statistics. Methodologically, this study employed the Granger Causality test and Vector Autoregression to determine the causality between inflation and unemployment. The results show that there is a one-way causality between inflation and unemployment. The findings imply that unemployment causes inflation, but not vice versa. Next inflation and unemployment are also closely related to other determining factors, such as season, household income, and the decisions to attend school or to perform the housekeeping.
Subjects: 
granger causality
inflation
unemployment
vector autoregression
JEL: 
E600
E610
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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