Analysis of the relationship of economic factors and the case of COVID-19 in the provinces in Indonesia using principal component analysis and factor analysis

COVID-19 has attacked all countries of the world including Indonesia since the end of 2019. The pandemic strikes public health and directly impacts the economic activities of the community and government. Regional income and workers’ wages are some of the economic factors most affected by COVID-19....

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Bibliographic Details
Main Authors: Sari, Kurnia Novita, Pasaribu, Udjianna Sekteria, Mukhaiyar, Utriweni, Talaohu, Ainun Maharani Tatiana
Format: Conference Proceeding
Language:English
Subjects:
COVID-19
Economic analysis
Economic factors
Factor analysis
Impact analysis
Income
Principal components analysis
Public health
Regional development
Scientific visualization
Variables
Wages & salaries
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Summary:COVID-19 has attacked all countries of the world including Indonesia since the end of 2019. The pandemic strikes public health and directly impacts the economic activities of the community and government. Regional income and workers’ wages are some of the economic factors most affected by COVID-19. Regional income and workers’ wages are divided into several variables based on the Indonesian central statistics agency. The government has made several regulations to contain the spread of COVID-19 cases. The community activity restrictions (PPKM) were implemented in stages to anticipate an increase in positive cases. In early 2021, a spike in positive cases occurred again, and it was rumored to be a potential second wave in several provinces. The increasing positive cases and their impact on the economy are modeled based on data in the 2nd semester of 2020 and the 1st semester of 2021. COVID-19 and economic variables were analyzed using principal component analysis. The main components obtained are more than three for the two semesters, with a cumulative variance proportion of more than 75%. Based on the factor analysis method, the COVID-19 variables and economic factors will be classified. Several tests were carried out before conducting factor analysis, namely the Bartlett test and KMO MSA. The test results state no significant variables, so they are not involved in further modeling. Based on the data visualization analysis, the positive case variable for COVID-19 is positively correlated with regional income compared to wages in Java provinces. The results may differ for several provinces in Indonesia.
ISSN:0094-243X
1551-7616
DOI:10.1063/5.0158188