Causal Relationships GDP per Capita, Human Development Index and Corruption Perceptions Index in Indonesia

9 Pages Posted: 29 Jan 2020

See all articles by Agus Eko Sujianto

Agus Eko Sujianto

Intitut Agama Islam Negeri (IAIN) Tulungagung

Mashudi Mashudi

Institut Agama Islam Negeri (IAIN) Tulungagung

Khusnul Mufidati

Institut Agama Islam Negeri (IAIN) Tulungagung

Date Written: August 29, 2019

Abstract

The purpose of this study is to explain the causal relationship of GDP per capita, CPI and HDI Indonesia which is broken down into three hypotheses. The research variables were collected from the World Bank, Transparency International and United Nations Development Program documentation from 1995 to 2018. Results of the study: first, based on unit root test on each variable using Augmented Dickey-Fuller (ADF) at the 1st level difference in value absolute statistic t is greater than critical value according to MacKinnon table. Similarly, the Prob value is smaller than 0.05, therefore, the research variable data are stationary. Second, the granger causality test is by comparing the probability values of each hypothesis with a 5% error rate. Based on the data analysis not a single hypothesis was tested, however, it is found that the one-way relationship is that HDI drives GDP per Capita with a probability of 0.0161 <0.05 using lag length 4.

Keywords: GDP per Capita, Human Development Index, Corruption Perceptions Index

Suggested Citation

Sujianto, Agus Eko and Mashudi, Mashudi and Mufidati, Khusnul, Causal Relationships GDP per Capita, Human Development Index and Corruption Perceptions Index in Indonesia (August 29, 2019). International Conference on Science, Technology & Environment (ICoSTE) 2019, Available at SSRN: https://ssrn.com/abstract=3495034 or http://dx.doi.org/10.2139/ssrn.3495034

Agus Eko Sujianto (Contact Author)

Intitut Agama Islam Negeri (IAIN) Tulungagung

Tulungagung
Indonesia

Mashudi Mashudi

Institut Agama Islam Negeri (IAIN) Tulungagung

Tulungagung
Indonesia

Khusnul Mufidati

Institut Agama Islam Negeri (IAIN) Tulungagung

Tulungagung
Indonesia

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