CAUSALITY OF ECONOMIC GROWTH AND EMPLOYMENT IN YOGYAKARTA SPECIAL REGION 2001-2020

Abstract

Abstract – This study aims to determine the causality pattern between Employment and Economic Growth in the Special Region of Yogyakarta from 2001-2020. The data used in this study were obtained from BPS (Central Bureau of Statistics) Yogyakarta Special Region. The research method used is the Granger causality test. The test results show that in the Special Region of Yogyakarta there is a one-way causality pattern, namely Economic Growth affects Employment, but Employment does not affect Economic Growth. This result shows that the process of economic growth in the Special Region of Yogyakarta over time has been conducive to Employment, so it can be a solution to the employment problem in the region. The fact that Employment does not affect economic growth suggests that there may be a problem with the productivity of the labor force, which is most likely in the agricultural sector.

Keywords: Granger Causality, Employment, Economic Growth