Inflation, Unemployment, and Economic Growth: Implication on Poverty Level in Bengkulu Province

Abstract

. This paper aims to investigate the role of inflation, unemployment, and economic growth in explaining the prevalence of poverty in Bengkulu Province. The study used a time series data for 26 years (1992-2017). The data were secondarily sourced from statistics bureau. Ordinary least square (OLS) was used as an analytical technique. Empirical results show that inflation and unemployment have positive and economic growth has negative impact on poverty. The paper recommends to applied an appropriate macroeconomic policy which is crucial for poverty alleviation. To improve economic growth, efforts must be put in place to increase productivity; improving the level of local production. To restrain the surging rate of unemployment, it is necessary to creates a work training center, opening new economic centers, and linking education and skills needed in the labor market. Furthermore, there must be concrete efforts to controlling inflation, because inflation affects poverty mainly through its impact on real wage. In other word, inflation affects people’s purchasing power.