Analysis of the Influence of Inflation on Economic Growth in Indonesia: Panel Data Regression Approach

Page Numbers: 279-291
Published: 2024-07-30
Digital Object Identifier: 10.58578/ijhess.v2i2.3505
Save this to:
Article Metrics:
Viewed : 54 times
Downloaded : 29 times
Article can trace at:

Author Fee:
Free Publication Fees for Foreign Researchers (0.00)
Connected Papers:
Connected Papers

Please do not hesitate to contact us if you would like to obtain more information about the submission process or if you have further questions.


  • Andryirawan Yakub Universitas Hasanuddin Makassar, Indonesia
  • Retno Fitrianti Universitas Hasanuddin Makassar, Indonesia
  • Andi Sopian Universitas Hasanuddin Makassar, Indonesia
  • A. Baso Aditya Sapanang Universitas Hasanuddin Makassar, Indonesia
  • A. Nur Fitrianti Universitas Hasanuddin Makassar, Indonesia
  • Hamka Hamka Universitas Hasanuddin Makassar, Indonesia

Abstract

Inflation and economic growth are two macroeconomic phenomena that are interrelated and have significant implications for the stability and economic welfare of a country. Inflation, which is measured as the general increase in the price of goods and services over time, can affect various aspects of the economy, including people's purchasing power, investment levels, and consumption decisions. This study uses a quantitative approach with a panel data regression method to analyze the influence of inflation on economic growth in Indonesia using the Eviews 12 application. The results of this study indicate that the influence of inflation on economic growth is not strong enough to be considered statistically significant in the period analyzed. Although there was a small positive effect of inflation on economic growth, these results showed that inflation was not the main factor affecting economic growth in Indonesia during the period. Therefore, policymakers must consider other factors that may have a more significant influence in formulating effective economic strategies.

Keywords: Inflation; Economic Growth; Panel Data Regression; Indonesia; Economic Policy
Share Article:

Citation Metrics:

Downloads

Download data is not yet available.
How to Cite
Yakub, A., Fitrianti, R., Sopian, A., Sapanang, A. B. A., Fitrianti, A. N., & Hamka, H. (2024). Analysis of the Influence of Inflation on Economic Growth in Indonesia: Panel Data Regression Approach. International Journal of Humanities, Education, and Social Sciences, 2(2), 279-291. https://doi.org/10.58578/ijhess.v2i2.3505

Creative Commons License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

References

Amarasekara, C. (2022). The Impact of Monetary Policy on Economic Growth and Inflation in Sri Lanka. Staff Studies, 38(1), 1. https://doi.org/10.4038/ss.v38i1.1220
Azaluddin, A., & Hanifa, L. (2021). Effect of Inflation and Economic Growth on The Rate of Unemployment. Sang Pencerah: Jurnal Ilmiah Universitas Muhammadiyah Buton, 7(4), 609–617. https://doi.org/10.35326/pencerah.v7i4.1559
BASUKI, A. T., PURWANINGSIH, Y., SOESILO, A. M., & MULYANTO, M. (2020). Determinants of Economic Growth in Indonesia: A Dynamic Panel Model. The Journal of Asian Finance, Economics and Business, 7(11), 147–156. https://doi.org/10.13106/jafeb.2020.vol7.no11.147
Economics, A. (2018). Inflation and the Economic Growth :Evidence from Five Asian Countries. Pakistan Journal of Applied Economics, 28(2).
Kusumatrisna, A. L., Sugema, I., & Pasaribu, S. H. (2022). THRESHOLD EFFECT in the RELATIONSHIP between INFLATION RATE and ECONOMIC GROWTH in Indonesia. Buletin Ekonomi Moneter Dan Perbankan, 25(2), 117–132. https://doi.org/10.21098/bemp.v25i1.1045
Manurung, M. S., & Yuniasih, A. F. (2022). Estimation of Inflation Threshold of Indonesia and Its Effect on Economic Growth Periode 1981-2019. Proceedings of The International Conference on Data Science and Official Statistics, 2021(1), 683–690. https://doi.org/10.34123/icdsos.v2021i1.230
Murjani, A. (2019). Short-Run and Long-Run Impact of Inflation, Unemployment, and Economic Growth Towards Poverty in Indonesia: Ardl Approach. Jurnal Dinamika Ekonomi Pembangunan, 2(1), 15. https://doi.org/10.14710/jdep.2.1.15-29
Muttaqin, F., & Halim, R. E. (2020). The Effect of Economic Growth and Inflation on Tax Revenue: Analysis on Areas with Dominant Economic Activities in Agriculture, Plantation, and Fisheries Sectors. 135(Aicmbs 2019), 27–33. https://doi.org/10.2991/aebmr.k.200410.005
Nengah Putra, I. A. (2023). The effect of inflation on income inequality: Evidence from a non-linear dynamic panel data analysis in indonesia. Decision Science Letters, 8(2023), 429–440. https://doi.org/10.5267/dsl.2023.4.001
Paluta, P. R., & Anggoro, Y. (2021). eval_uation of Business Strategy Implementation and its Impact to Consumer Purchase Decision). The 3rd International Conference on Business and Banking Innovations, 18–22.
Radzi, A. R. A., & Hadi, A. R. A. (2023). The Role of Economic Growth in Containing Inflationary Spiral in Selected ASEAN Countries – Panel Data Evidence from Malaysia, Indonesia, Thailand, and Singapore. Contemporary Economics, 17(4), 379–388. https://doi.org/10.5709/ce.1897-9254.517
Sulasni, P., & Surbakti, S. B. B. (2022). Economic Freedom, FDI, Inflation and Economic Growth in East and Southeast Asian Countries: A Panel Data Analysis. International Journal of Research Publication and Reviews, November, 135–143. https://doi.org/10.55248/gengpi.2022.3.11.2
Vinayagathasan, T. (2013). Inflation and economic growth: A dynamic panel threshold analysis for Asian economies. Journal of Asian Economics, 26(1), 31–41. https://doi.org/10.1016/j.asieco.2013.04.001
Winarno, T. (2018). The Dynamics Relationship Between Inflation And Economic Growth In Indonesia: A Regional Thresholds Approach. Analytical Biochemistry, 11(1), 1–5. http://link.springer.com/10.1007/978-3-319-59379-1%0Ahttp://dx.doi.org/10.1016/B978-0-12-420070-8.00002-7%0Ahttp://dx.doi.org/10.1016/j.ab.2015.03.024%0Ahttps://doi.org/10.1080/07352689.2018.1441103%0Ahttp://www.chile.bmw-motorrad.cl/sync/showroom/lam/es/
Yuniarti, D., Rosadi, D., & Abdurakhman. (2021). Inflation of Indonesia during the COVID-19 pandemic. Journal of Physics: Conference Series, 1821(1). https://doi.org/10.1088/1742-6596/1821/1/012039