IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-02-30.html
   My bibliography  Save this article

The Asymmetry Effect of Oil Consumption, Unemployment and Broadband Technology on Economic Growth in Indonesia

Author

Listed:
  • Wali Aya Rumbia

    (Department of Economics, Halu Oleo University, Kendari 93232, Indonesia)

  • Abd Azis Muthalib

    (Department of Economics, Halu Oleo University, Kendari 93232, Indonesia)

  • Bakhtiar Abbas

    (Sekolah Tinggi Ilmu Ekonomi Enam-Enam, Kendari 93121, Indonesia)

  • Pasrun Adam

    (Sekolah Tinggi Ilmu Ekonomi Enam-Enam, Kendari 93121, Indonesia)

  • Asrul Jabani

    (Sekolah Tinggi Ilmu Ekonomi Enam-Enam, Kendari 93121, Indonesia)

  • Yuwanda Purnamasari Pasrun

    (Department of Information System, Universitas Sembilanbelas November, Kolaka 93514, Indonesia)

  • Dzulfikri Azis Muthalib

    (Study Program of Management, Universitas Muhammadyah, Kendari 93118, Indonesia)

Abstract

This research aims to examine the asymmetry effect of oil consumption, unemployment, and broadband technology on economic growth in Indonesia. Data on these attributes were annually collected from 2000 to 2019. The effect test result using the nonlinear autoregressive distributed lag (NARDL) model showed that oil consumption and unemployment affect economic growth asymmetrically in the long and short term. Meanwhile, broadband technology only affects economic growth only in the long term, and this effect is positive.

Suggested Citation

  • Wali Aya Rumbia & Abd Azis Muthalib & Bakhtiar Abbas & Pasrun Adam & Asrul Jabani & Yuwanda Purnamasari Pasrun & Dzulfikri Azis Muthalib, 2022. "The Asymmetry Effect of Oil Consumption, Unemployment and Broadband Technology on Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 276-281, March.
    • Handle: RePEc:eco:journ2:2022-02-30
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/12791/6682
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/12791
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey A. Edwards & Alfredo A. Romero & Zagros Madjd-Sadjadi, 2016. "Foreign direct investment, economic growth, and volatility: a useful model for policymakers," Empirical Economics, Springer, vol. 51(2), pages 681-705, September.
    2. Ghali, Khalifa H. & El-Sakka, M. I. T., 2004. "Energy use and output growth in Canada: a multivariate cointegration analysis," Energy Economics, Elsevier, vol. 26(2), pages 225-238, March.
    3. Edquist, Harald & Goodridge, Peter & Haskel, Jonathan & Li, Xuan & Lindquist, Edward, 2018. "How important are mobile broadband networks for the global economic development?," Information Economics and Policy, Elsevier, vol. 45(C), pages 16-29.
    4. Paul Terna Gbahabo & Oluseye Samuel Ajuwon, 2019. "Mobile Broadband And Economic Growth In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(1), pages 65-78, March.
    5. Castells-Quintana , David & Royuela, Vicente, 2012. "Unemployment and long-run economic growth: The role of income inequality and urbanisation," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 153-173.
    6. Brauninger, Michael & Pannenberg, Markus, 2002. "Unemployment and productivity growth: an empirical analysis within an augmented Solow model," Economic Modelling, Elsevier, vol. 19(1), pages 105-120, January.
    7. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    8. Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    9. Agboli, Victor, 2021. "The Effect of Unemployment Rate on the Gross Domestic Product in Nigeria (A Bayesian Approach)," OSF Preprints d8ek9, Center for Open Science.
    10. Bashiri Behmiri, Niaz & Pires Manso, José R., 2013. "How crude oil consumption impacts on economic growth of Sub-Saharan Africa?," Energy, Elsevier, vol. 54(C), pages 74-83.
    11. Timothy DeStefano & Koen De Backer & Laurent Moussiegt, 2017. "Determinants of digital technology use by companies," OECD Science, Technology and Industry Policy Papers 40, OECD Publishing.
    12. Al-mulali, Usama, 2011. "Oil consumption, CO2 emission and economic growth in MENA countries," Energy, Elsevier, vol. 36(10), pages 6165-6171.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudio Sassanelli & Tiziano Arriga & Stefano Zanin & Idiano D'Adamo & Sergio Terzi, 2022. "Industry 4.0 Driven Result-oriented PSS: An Assessment in the Energy Management," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 186-203, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Özgür Özaydın* & H. Alper Güzel, 2019. "Oil Consumption and Economic Growth in Turkey: An ARDL Bounds Test Approach in the Presence of Structural Breaks," Business, Management and Economics Research, Academic Research Publishing Group, vol. 5(6), pages 77-85, 06-2019.
    2. Jos Alberto Fuinhas & Ant nio Cardoso Marques & Alcino Pinto Couto, 2015. "Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 148-163.
    3. Edquist, Harald, 2022. "The economic impact of mobile broadband speed," Telecommunications Policy, Elsevier, vol. 46(5).
    4. Jamal BOUOIYOUR & Refk SELMI & Ilhan OZTURK, 2014. "The Nexus between Electricity Consumption and Economic Growth: New Insights from Meta-Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 621-635.
    5. repec:ipg:wpaper:2014-514 is not listed on IDEAS
    6. Jamal Bouoiyour & Refk Selmi & Muhammad Shahbaz, 2014. "The Electricity Consumption in a Rentier State: Do Institutions Matter ?," Working papers of CATT hal-01880334, HAL.
    7. Esseghir, Asma & Haouaoui Khouni, Leila, 2014. "Economic growth, energy consumption and sustainable development: The case of the Union for the Mediterranean countries," Energy, Elsevier, vol. 71(C), pages 218-225.
    8. Shahbaz, Muhammad & Sarwar, Suleman & Chen, Wei & Malik, Muhammad Nasir, 2017. "Dynamics of electricity consumption, oil price and economic growth: Global perspective," Energy Policy, Elsevier, vol. 108(C), pages 256-270.
    9. Eyup Dogan, 2016. "The Relationship between Economic Growth, Energy Consumption and Trade," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 70-80, March.
    10. Alam & Paramati, 2015. "Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies," Applied Economics, Taylor & Francis Journals, vol. 47(48), pages 5186-5203, October.
    11. Behmiri, Niaz Bashiri & Pires Manso, José Ramos, 2014. "The linkage between crude oil consumption and economic growth in Latin America: The panel framework investigations for multiple regions," Energy, Elsevier, vol. 72(C), pages 233-241.
    12. Kangjuan Lv & Jiaqi Li & Ye Zhao, 2023. "Can Internet Construction Promote Urban Green Development? A Quasi-Natural Experiment from the “Broadband China”," IJERPH, MDPI, vol. 20(6), pages 1-21, March.
    13. Briglauer, Wolfgang & Cambini, Carlo & Gugler, Klaus, 2023. "Economic benefits of high-speed broadband network coverage and service adoption: Evidence from OECD member states," Research Papers 23, EcoAustria – Institute for Economic Research.
    14. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Renewable and non-renewable energy-growth-emissions linkages: Review of emerging trends with policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 275-291.
    15. Bildirici, Melike E. & Bakirtas, Tahsin, 2014. "The relationship among oil, natural gas and coal consumption and economic growth in BRICTS (Brazil, Russian, India, China, Turkey and South Africa) countries," Energy, Elsevier, vol. 65(C), pages 134-144.
    16. Tomas Vlcek & Martin Jirusek & James Henderson, 2015. "Risk Assessment in Construction Process in Nuclear Sector within the Central and Eastern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 482-493.
    17. Rahman, Md. Saifur & Noman, Abu Hanifa Md. & Shahari, Farihana, 2017. "Does economic growth in Malaysia depend on disaggregate energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 640-647.
    18. Kwak, Kyu Tae & Lee, Seung Yeop & Ham, Minjeong & Lee, Sang Woo, 2021. "The effects of internet proliferation on search engine and over-the-top service markets," Telecommunications Policy, Elsevier, vol. 45(8).
    19. Naser, Hanan, 2015. "Analysing the long-run relationship among oil market, nuclear energy consumption, and economic growth: An evidence from emerging economies," Energy, Elsevier, vol. 89(C), pages 421-434.
    20. Eyup DOGAN, 2014. "Energy Consumption and Economic Growth: Evidence from Low-Income Countries in Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 154-162.
    21. Ndubuisi, Gideon & Otioma, Chuks & Owusu, Solomon & Tetteh, Godsway Korku, 2022. "ICTs quality and technical efficiency: An empirical analysis," Telecommunications Policy, Elsevier, vol. 46(10).

    More about this item

    Keywords

    Oil Consumption; Unemployment; Broadband Technology; NARDL Model;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-02-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.