Using Granger Causality to Examine the Relationship Between Economic Growth and Absorption of Labor In North Sumatera Province – Indonesia

Content Provider	Semantic Scholar
Author	Rahmadana, Muhammad Fitri Sridany Simatupang
Copyright Year	2016
Abstract	This study refers to Okun's Law on the economy in North Sumatera Province. Difference with previous studies, in this study the data used is not aggregate data but the data of each economic sector. In addition, the unemployment variable is proxy with the absorption of labor rate. The data analysis was tested by Granger Causality to determine the direction of the relationship between variables for growth of each economic sectors and absorption of labor. By using the Granger Causality Test analysis we concluded that the agricultural sector has a two-way direction relationship between economic growth and absorption of labor. Mining and Quarrying sector, construction sector, transport and communication sector and services sector only have one-way direction relationship from absorption of labor to economic growth. Electricity, gas and water supply have one-way direction relationship from economic growth to absorption of labor. Three other sectors are sectors manufacturing industry sector; trade, hotel and restaurant sector and finance, real estate and business service have no relationship at all between economic growth and absorption of labor.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://www.ijbmi.org/papers/Vol(5)2/Version%20-1/F0502038043.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article