Global Economic, Social, and Development Review

The Nexus of Economic Growth, Human Development Index, and Unemployment to Income Inequality in East Java

Elyada Christi Octavia — 2024-11-03

The research seeks to analyse the complex correlation between economic growth, human development index, and unemployment on income inequality in East Java from 2018 to 2022. This study addresses the issue of inequality in East Java both theoretically and empirically. The data is obtained from the Central Agency of Statistics and the Regional Development Planning Agency of East Java Province. Through specific considerations, this study utilized panel data from the six districts or cities with the highest and lowest income inequality. The data analysis employs panel data regression with the selected model, the Common Effect Model, to examine the influence among variables. Furthermore, in describing the results of the analysis, descriptive and quantitative methods are used. The analysis shows that the three exogenous variables collectively influence income inequality. Through the T-test, it was discovered that only the human development index variable shows a significant effect on income inequality. On the contrary, economic growth and unemployment variables show no significant effect. However, all three positively correlate with income inequality in East Java from 2018 to 2022.

Agglomeration and Economic Growth: A Scoping Review of Socioeconomic Conflicts and Policy Implications

Jordan Putra Cahyono — 2024-11-03

This scoping review aims to synthesize existing research on the relationships between economic agglomeration, social-economic change, and their impacts on economic growth, with a focus on identifying key conflicts and policy issues. The study employs a comprehensive literature search using databases such as Scopus, Web of Science, and Google Scholar, targeting peer-reviewed articles published in the last decade. The review process entails a meticulous examination and synthesis of selected sources, with the findings then organized into a coherent narrative review. The analysis yielded several key themes, including a positive correlation between economic agglomeration and growth, the development of specialized infrastructure and human capital, and the facilitation of knowledge spillovers. Nevertheless, the review also identifies potential adverse consequences, including the displacement of local communities, the intensification of income inequality, and the burden on public services. The study concludes by emphasizing the necessity of carefully designed policy interventions to ensure sustainable and inclusive economic growth, addressing the concerns of all stakeholders involved in the complex dynamics of economic agglomeration and social-economic change in a manner that is both equitable and effective.

Does Historical Contingency Dictate Economic Diplomacy? Evidence From CIDCA and JICA

Yeremia Nicolaus Widjanarko — 2024-12-06

This study examines how the historical experiences shape the approaches of developmental agencies to economic diplomacy by focusing on CIDCA and JICA through the deep-sharp lens of Path Dependence Theory. Using qualitative comparative analysis of secondary data from official documents, academic literatures, and policy papers, this research reveals distinct patterns in how the historical contingencies influence both institutional development and aid distribution strategy. JICA, established in 1974, demonstrates classic path dependence characteristics, with its human-centred development approach and technical cooperation focus deeply rooted within Japan’s post- WW2 experience. In contrast, CIDCA, founded in 2018, shows limited path-dependent features due to its recent establishment and predetermined alignment with China’s BRI. The analysis done yields three key insights – the temporal dimensions significantly affect institutional development patterns, historical experiences shape institutional approaches differently across time periods, and aid effectiveness correlates with both of those agencies’ ability to balance historical legacies with contemporary challenges. While JICA’s longer operational history has fostered a reputation for its transparency and sustainable development, CIDCA’s strategy reflects contemporary dynamics of power through infrastructure-focused development. These findings contribute to understanding of how historical contexts influence development approaches, through limitations regarding distinct operational time frames and data availability suggest the need for continued research as CIDCA evolves.