The Impact of Corruption on Unemployment in Indonesia


Authors : Nugroho; Mulyo Hendarto; Fitri Bahari

Volume/Issue : Volume 9 - 2024, Issue 5 - May

Google Scholar : https://tinyurl.com/4epxvme6

Scribd : https://tinyurl.com/6p3v6vme

DOI : https://doi.org/10.38124/ijisrt/IJISRT24MAY954

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Abstract : This research aims to analyze the impact of economic growth and corruption on unemployment in Indonesia from 1995 to 2023. The research results show that economic growth has no effect on unemployment because the engine of Indonesia's economic growth is a capital intensive sector. However, on the other hand, corruption has a positive impact on unemployment, so to reduce unemployment the government must enforce the law more firmly.

Keywords : Corruption, Unemployment, Economic Growth.

References :

  1. Adjor DR and leleng Kebalo (2018), Does Corruption Matter for Unemployment in SADC Countries?, Review of Economic and Business Studies, Volume 11, Issue 2, pp.65-92, available at http://rebs.feaa.uaic.ro/articles/pdfs/287.pdf
  2. Bouzid, Bechir N (2016), Dynamic Relationship Between Corruption and Youth Unemployment: Empirical Evidences From System GMM Approach, Policy Research Working Paper 7842 (WPS 7842), World Bank Group Compensation and Performance Unit, available at https://documents.worldbank.org/en/publication/documents-reports/documentdetail/916781475156227542/dynamic-relationship-between-corruption-and-youth-unemployment-empirical-evidences-from-a-system-gmm-approach
  1. Nagel Katarzyna (2015),  Relationships Between Unemployment and Economic Growth – The Review Rresults) of The Theoretical and Empirical Research, Journal of Economics and Management, ISSN 1732-1948 Vol. 20 (2), University of Economics in Katowice, avalaible at https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/ JEM_Artyku%C5%82y_1_30/JEM_20/05.pdf
  2. Nnaemeka and Obasi Nathaniel (2021), Does Corruption Matter For Unemployment Investigating The Role Of Bribery, Favouritism, Nepotism Corrupt Practices in Employment, Evidence From Nigeria, Journal of Developing Economies ISSN 4960-5720 (Online) Vol.3, Issue 1, pp 32 – 50, available at https://www.ajpojournals.org/journals/index.php/JDE/article/view/853/977
  3. Onchari DG (2019), The Relationship Between Corruption and Unemployment in Kenya, Akademi Sosyal Bilimler Dergisi, Ankara Hacı Bayram Veli University Volume: 6 Issue: 17, 309 - 318, 11.05.2019, available at https://dergipark.org.tr/en/download/article-file/712416

6. Chuttoo, Usha Devi (2020), Effect of Economic Growth on Unemployment and Validity of Okun’s Law in Mauritius, Global Journal of Emerging Market Economies, Vol 2, Issue 2, available at https://journals.sagepub.com/doi/10.1177/0974910119886934

This research aims to analyze the impact of economic growth and corruption on unemployment in Indonesia from 1995 to 2023. The research results show that economic growth has no effect on unemployment because the engine of Indonesia's economic growth is a capital intensive sector. However, on the other hand, corruption has a positive impact on unemployment, so to reduce unemployment the government must enforce the law more firmly.

Keywords : Corruption, Unemployment, Economic Growth.

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