Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment

This study aims to analyze the effect of the construction cost index and unemployment rate on regional economic growth, with the investment rate as an intervening variable. This study uses data from the National Capital City (IKN) for the 2019-2023 period using panel data from 10 cities in the IKN r...

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Main Authors: Meby Amalia, Veri Indirman, Riyan Harbi Valdiansyah
Format: Article
Language:English
Published: Fakultas Ekonomi dan Bisnis 2025-03-01
Series:Dialektika: Jurnal Ekonomi dan Ilmu Sosial
Subjects:
Online Access:https://ejournal.uniramalang.ac.id/dialektika/article/view/6475
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author Meby Amalia
Veri Indirman
Riyan Harbi Valdiansyah
author_facet Meby Amalia
Veri Indirman
Riyan Harbi Valdiansyah
author_sort Meby Amalia
collection DOAJ
description This study aims to analyze the effect of the construction cost index and unemployment rate on regional economic growth, with the investment rate as an intervening variable. This study uses data from the National Capital City (IKN) for the 2019-2023 period using panel data from 10 cities in the IKN region for five years. This study used path analysis (mediation) with the Sobel test. The results show a significant relationship between the construction cost index and unemployment rate and economic growth. Construction infrastructure investment has a long-term positive impact through improved infrastructure quality and job creation. On the other hand, a high unemployment rate can hamper economic growth because of decreased purchasing power and limited market demand. This research emphasizes the importance of careful and sustainable infrastructure development planning as well as efforts to create quality jobs to support inclusive economic growth. The results provide important insights for policymakers and developers in planning infrastructure development in IKN.
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id doaj-art-4943ebf07ee24a91a0595f7fe94211c6
institution Kabale University
issn 2502-4094
2598-781X
language English
publishDate 2025-03-01
publisher Fakultas Ekonomi dan Bisnis
record_format Article
series Dialektika: Jurnal Ekonomi dan Ilmu Sosial
spelling doaj-art-4943ebf07ee24a91a0595f7fe94211c62025-08-21T00:02:52ZengFakultas Ekonomi dan BisnisDialektika: Jurnal Ekonomi dan Ilmu Sosial2502-40942598-781X2025-03-011012435https://doi.org/10.36636/dialektika.v10i1.6475Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and InvestmentMeby Amalia0Veri Indirman1Riyan Harbi Valdiansyah2Universitas Budi LuhurUniversitas Budi LuhurUniversitas Budi LuhurThis study aims to analyze the effect of the construction cost index and unemployment rate on regional economic growth, with the investment rate as an intervening variable. This study uses data from the National Capital City (IKN) for the 2019-2023 period using panel data from 10 cities in the IKN region for five years. This study used path analysis (mediation) with the Sobel test. The results show a significant relationship between the construction cost index and unemployment rate and economic growth. Construction infrastructure investment has a long-term positive impact through improved infrastructure quality and job creation. On the other hand, a high unemployment rate can hamper economic growth because of decreased purchasing power and limited market demand. This research emphasizes the importance of careful and sustainable infrastructure development planning as well as efforts to create quality jobs to support inclusive economic growth. The results provide important insights for policymakers and developers in planning infrastructure development in IKN.https://ejournal.uniramalang.ac.id/dialektika/article/view/6475construction cost indexunemployment rateeconomic growthinvestmentnational capital city
spellingShingle Meby Amalia
Veri Indirman
Riyan Harbi Valdiansyah
Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
Dialektika: Jurnal Ekonomi dan Ilmu Sosial
construction cost index
unemployment rate
economic growth
investment
national capital city
title Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
title_full Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
title_fullStr Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
title_full_unstemmed Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
title_short Dynamics of Economic Growth in the National Capital (IKN): The Role of Construction Cost Index, Unemployment Rate, and Investment
title_sort dynamics of economic growth in the national capital ikn the role of construction cost index unemployment rate and investment
topic construction cost index
unemployment rate
economic growth
investment
national capital city
url https://ejournal.uniramalang.ac.id/dialektika/article/view/6475
work_keys_str_mv AT mebyamalia dynamicsofeconomicgrowthinthenationalcapitalikntheroleofconstructioncostindexunemploymentrateandinvestment
AT veriindirman dynamicsofeconomicgrowthinthenationalcapitalikntheroleofconstructioncostindexunemploymentrateandinvestment
AT riyanharbivaldiansyah dynamicsofeconomicgrowthinthenationalcapitalikntheroleofconstructioncostindexunemploymentrateandinvestment