Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)

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Causality Analysis Of Economic Growth, Inflation And Employment In West Sumatera

Authors
Sconda Novriadi1, *, Hasdi Aimon1
1Universitas Negeri Padang, Padang, Sumatera Barat, Indonesia
*Corresponding author. Email: sconda.novriadi@gmail.com
Corresponding Author
Sconda Novriadi
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-839-4_20How to use a DOI?
Keywords
Economic Growth; Inflation; Employment; VAR
Abstract

This study aims to examine and assess the causal relationships among economic growth, inflation, and employment in West Sumatra. The research adopts an associative and descriptive approach, employing secondary Time Series data covering the period from the first semester of 2000 to the second semester of 2021 in West Sumatra. Utilizing Vector Auto Regression (VAR) as the analytical method, the study investigates the variables of economic growth, inflation, and employment. The findings are as follows: (1) The Granger causality test reveals a one-way causal relationship between inflation and economic growth, where inflation influences economic growth, but economic growth does not impact inflation in West Sumatra. (2) The Granger causality test also indicates that there is no causal relationship, whether one-way or two-way, between inflation and employment opportunities. This is demonstrated by the lack of influence of inflation on employment, and vice versa, in West Sumatra. (3) Lastly, the Granger causality test confirms a two-way causal relationship between economic growth and employment opportunities. Economic growth influences employment opportunities, while employment opportunities also affect economic growth in West Sumatra.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
16 September 2025
ISBN
978-94-6463-839-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-839-4_20How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Sconda Novriadi
AU  - Hasdi Aimon
PY  - 2025
DA  - 2025/09/16
TI  - Causality Analysis Of Economic Growth, Inflation And Employment In West Sumatera
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 225
EP  - 235
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_20
DO  - 10.2991/978-94-6463-839-4_20
ID  - Novriadi2025
ER  -