Abstract
The aim of this study is to analyze the relationship between Inflation, Income Inequality and Economic Growth in Indonesia. The type of this research is associative and analysisdescriptive. The data used in this reseach is secondary of time series from 1986 to 2016 obtained from Word Bank. Analysis model using the Vector Autoregression (VAR). Theanalysis initially used the Vector Autoregression (VAR), because the stationer variabel on first diferent range, then this study continued byVector Error CorrectionModel (VECM) and Granger Causality Test. The result of this study show (1) There is nocausality between Inflation affects to Income Inequality, (2) There is no causality between Inflation affects to Economic Growth, (3) There is causality in the direction in which Income Inequality affects to Economic Growth. In addition, because of the prevalence of income in Indonesia, this will increase economic growth in Indonesia. Keywords:Inflation, Income Inequality, Economic Growth
Highlights
PENDAHULUAN Pertumbuhan ekonomi merupakan proses perubahan kondisi perekonomian suatu negara secara menuju keadaan yang lebih baik selama periode tertentu
Abstrak:The aim of this study is to analyze the relationship between Inflation, Income Inequality and Economic Growth in Indonesia
The result of this study show (1) There is nocausality between Inflation affects to Income Inequality, (2) There is no causality between Inflation affects to Economic Growth, (3) There is causality in the direction in which Income Inequality affects to Economic Growth
Summary
Sebelum melakukna uji VectorError Correction Model (VECM) maka perlu dilakukan uji stasioner data.Dalam penelitian ini, data yang digunakan merupakan data selama tahun 1986-2016. Hasil uji stasioneritas dengan metode ADF dalam penelitian ini dapat dilihat pada Tabel 1
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