Research Article
How The Effect of Economic Shocks on Regional Income? Period Before and During COVID-19: Case 18 Largest Cities In Indonesia
@INPROCEEDINGS{10.4108/eai.7-10-2021.2316149, author={Hasdi Aimon and Anggi Putri Kurniadi and Sri Ulfa Sentosa}, title={How The Effect of Economic Shocks on Regional Income? Period Before and During COVID-19: Case 18 Largest Cities In Indonesia}, proceedings={Proceedings of the 4th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2021, 7 October 2021, Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2022}, month={4}, keywords={regional income economic shocks employment opportunities price stability price expectations}, doi={10.4108/eai.7-10-2021.2316149} }- Hasdi Aimon
Anggi Putri Kurniadi
Sri Ulfa Sentosa
Year: 2022
How The Effect of Economic Shocks on Regional Income? Period Before and During COVID-19: Case 18 Largest Cities In Indonesia
ICEBE
EAI
DOI: 10.4108/eai.7-10-2021.2316149
Abstract
This study analyzes the economic shocks to regional income before and during COVID-19 in the 18 largest cities in Indonesia (DKI Jakarta, Bandung, Semarang, Surabaya, Medan, Palembang, Banjar Masin, Bandar Lampung, Makassar, Samarinda, Denpasar, Padang, Pontianak, Manado, Mataram, Pangkal Pinang, Ambon and Banten) for the period August-2018 until May-2021 using panel regression. The findings are that the economic shocks due to the spread of the COVID-19 pandemic have resulted in a decrease in regional income. Furthermore, economic conditions, employment opportunities and price stability have a positive and significant effect on regional income. Meanwhile, price expectations also have a positive but insignificant effect on regional revenues. The government needs to deal with the impact of the economic shocks caused by the COVID-19 pandemic, including maintaining the stability of control variables, providing stimulus for the business sector and strengthening people's purchasing power.