Journal of Economic Criminology (Dec 2023)
The interplay of corruption, human capital, and unemployment in Indonesia: Implications for economic development
Abstract
This study was conducted by examining the interrelationships between Corruption, Human Resources, and Unemployment in Indonesia. We use data sourced from the World Bank and Transparency International with the period used from 1996 to 2021. This study aims to examine the relationship that exists between Corruption, Human Resources, and Unemployment so as to provide information in understanding the benefits of investing towards developing Human Resources. in order to improve the quality of society. We use Vector error Correction Model (VECM) analysis with the research variables used are Corruption, Human Capital, and Unemployment. Our conclusions indicate that corruption makes a considerable contribution to the growth and progress of the nation and its people. In light of this, we strongly advise the Indonesian government to take decisive action to tackle the issue of corruption head-on. This can be achieved through a combination of measures, such as the implementation of stricter regulations and penalties for corrupt activities, the promotion of transparency and accountability in government operations, and a significant investment in human capital development programs. By addressing the root causes of the problem, the government can create a pathway towards sustainable positive change for the nation. Furthermore, our research highlights the importance of addressing corruption With the aim of establishing a more advantageous atmosphere for the expansion of the economy and progress. It is well established that corruption can stifle innovation, undermine the rule of law, and reduce investment. Thus, it is imperative that the government take a proactive approach to combating corruption in order to ensure that the country remains on a trajectory of progress and prosperity. In conclusion, our research provides clear evidence of the negative impact of corruption on unemployment and human capital in Indonesia. By taking decisive action to address this issue, the government can create a more favourable environment for economic growth and development while also improving the lives of its citizens. It is our desire that this study will be a useful tool for decision-makers. in their efforts to create a brighter future for Indonesia.
