Dynamics of Economic Growth in East Java


International Research Journal of Economics and Management Studies
© 2025 by IRJEMS
Volume 4  Issue 7
Year of Publication : 2025
Authors : Nur Yaqini, Edy Santoso, Sebastiana Viphindrartin
irjems doi : 10.56472/25835238/IRJEMS-V4I7P111

Citation:

Nur Yaqini, Edy Santoso, Sebastiana Viphindrartin. "Dynamics of Economic Growth in East Java" International Research Journal of Economics and Management Studies, Vol. 4, No. 7, pp. 80-84, 2025.

Abstract:

This study aims to analyze the effect of the Human Development Index (HDI), poverty rate, and unemployment on economic growth in East Java Province. The data used are panel data from 36 districts/cities during the period 2019–2023. The model used is a dynamic panel data model with the Generalized Method of Moments (GMM) Arellano-Bond approach to overcome the problems of endogeneity and temporal dynamics. The results show that HDI has a significant effect on economic growth, while poverty and unemployment have significant and insignificant effects, respectively. These findings emphasize the importance of human development, poverty alleviation and unemployment in driving regional economic growth.

References:

[1] Amy Farzana, Shamzaefa Samsudin, Junaidah Hasan (2024). Drivers of economic growth: a dynamic short panel data analysis using system GMM. Discover Sustainability. 5(393).
[2] Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo
[3] Bimbi Resti Mataheurilla, Lucky Rachmawati (2021). The Influence of Human Development Index, Unemployment and Poverty on Economic Growth in Malang Regency. Independent: Journal Of Economics. 1(3). 2798-5008
[4] Blundell, R., & Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel
[5] Dinar Wahyuningrum, Izza Mafruhah, Mulyanto (2022). Implementation of Decentralization Policy on Economic Growth in Central Java Province (GMM Arellano-Bond Approach). International Journal of Multicultural and Multireligious Understanding. 9(9). 136-143
[6] Evidence and an Application to Employment Equations. The Review of Economic Studies, Vol. 58: 277-297.
[7] Galih Adi Prasetyo (2019). The Effect of Telecommunication Infrastructure Development on Economic Growth in ASEAN. JIET (Journal of Applied Economics). 4(1). 47-58
[8] Hansen, L. P. (1982). "Large Sample Properties of Generalized Method of Moments Estimators". Econometrica, 50(4), 1029-1054.
[9] Heppi Syofya (2022). Modeling Analysis of Economic Growth in Asia with a Dynamic Panel Approach Generalized Method of Moment (GMM). International Journal of Entrepreneurship and Business Development. 05(04). 2597-4785
[10] Joko Hadi Susiloa, Luthfi Ibnu Tsanib, Heriantoc, M Kholilurrohman (2020). Econometrics Model of Economic Growth in East Java Province with Dynamic Panel Data through Arellano-Bond Generalized Method of Moments (GMM) Approach. Ekuilibrium: Scientific Journal of Economics. 15(1). 38-53
[11] Mankiw, N.G. (2006) “Macroeconomics”. Translated by Fitria and Imam. Jakarta: Erlangga.
[12] Ravallion, M., & Chen, S. (2019). Growth, Inequality, and Poverty: Evidence from Developing Countries. Oxford Economic Papers.
[13] Romer, P. M. (1990). "Endogenous Technological Change". Journal of Political Economy, 98(5), S71-S102.
[14] Setiawan & Kusrini, DE (2010). Econometrics. Yogyakarta: CV Andi Offset
[15] Solow, R. M. (1956). "A Contribution to the Theory of Economic Growth". Quarterly Journal of Economics, 70(1), 65-94.
[16] Todaro & Michael, P., (2000). Economic development in the third world. Seventh edition. Jakarta: Erlangga.
[17] Todaro, M. P., & Smith, S. C. (2020). Economic Development. Pearson Education.
[18] Verbeek, M. (2008). A Guide to Modern Econometrics. Wiley.
[19] Wawro, G. (2002). Estimating Dynamic Panel Data Models in Political Science. Political Analysis, 10(1), 25–48.
[20] Winanto, Asis Riat, 2019, "Investment, Labor and Its Influence on Economic Growth in Ponorogo Regency", Ekuilibrium: Scientific Journal of Economics, 14(1), 58-73.

Keywords:

Economic growth, HDI, poverty, unemployment, GMM, dynamic panel data.