How Capital, Labor, and Technology Influence Java’s Economic Growth
Indonesia is a developing country with a relatively stable economy, as can be seen in Indonesia’s real GDP per capita, which tends to increase before the Covid-19 pandemic. However, there is a disparity in economic growth between Java and outside Java. During the 2010-2020 period, Java’s economic gr...
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| Format: | UMS Journal (OJS) |
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Muhammadiyah University Press
2022
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| Online Access: | https://journals.ums.ac.id/index.php/JEP/article/view/18278 |
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| author | Fevriera, Sotya Archintia, Sefira Siwi, Virgiana Nugransih |
| author_facet | Fevriera, Sotya Archintia, Sefira Siwi, Virgiana Nugransih |
| author_sort | Fevriera, Sotya |
| collection | OJS |
| description | Indonesia is a developing country with a relatively stable economy, as can be seen in Indonesia’s real GDP per capita, which tends to increase before the Covid-19 pandemic. However, there is a disparity in economic growth between Java and outside Java. During the 2010-2020 period, Java’s economic growth reached 61.9%, while outside Java was only 48.5%. According to the Solow Model theory, three factors can influence economic growth: capital, labor, and technology. Therefore, this study aims to determine the effect of capital, labor, and technology on economic growth in Java. This research was conducted using two approaches, namely generalized least square (GLS) and mixed-effect regression model (MEM). Both methods show the same result that capital and labor have a significant positive effect on the real GRDP of the provinces in Java. In contrast, technology has an insignificant effect on the real GRDP of the provinces in Java. This study also found significant random effects among provinces in Java for the number of workers and capital, but not on technology. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals.ums.ac.id:article-18278 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2022 |
| publisher | Muhammadiyah University Press |
| record_format | ojs |
| spelling | oai:ojs2.journals.ums.ac.id:article-18278 How Capital, Labor, and Technology Influence Java’s Economic Growth Fevriera, Sotya Archintia, Sefira Siwi, Virgiana Nugransih Economic Growth, real GDP, Capital, Labor, Technology O11, O13, O15, O16 Indonesia is a developing country with a relatively stable economy, as can be seen in Indonesia’s real GDP per capita, which tends to increase before the Covid-19 pandemic. However, there is a disparity in economic growth between Java and outside Java. During the 2010-2020 period, Java’s economic growth reached 61.9%, while outside Java was only 48.5%. According to the Solow Model theory, three factors can influence economic growth: capital, labor, and technology. Therefore, this study aims to determine the effect of capital, labor, and technology on economic growth in Java. This research was conducted using two approaches, namely generalized least square (GLS) and mixed-effect regression model (MEM). Both methods show the same result that capital and labor have a significant positive effect on the real GRDP of the provinces in Java. In contrast, technology has an insignificant effect on the real GRDP of the provinces in Java. This study also found significant random effects among provinces in Java for the number of workers and capital, but not on technology. Muhammadiyah University Press 2022-12-31 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/JEP/article/view/18278 10.23917/jep.v23i2.18278 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan; Vol 23, No 2 (2022): JEP 2022; 269-282 2460-9331 1411-6081 eng https://journals.ums.ac.id/index.php/JEP/article/view/18278/8117 Copyright (c) 2022 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan https://creativecommons.org/licenses/by/4.0 |
| spellingShingle | Economic Growth, real GDP, Capital, Labor, Technology O11, O13, O15, O16 Fevriera, Sotya Archintia, Sefira Siwi, Virgiana Nugransih How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title | How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title_full | How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title_fullStr | How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title_full_unstemmed | How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title_short | How Capital, Labor, and Technology Influence Java’s Economic Growth |
| title_sort | how capital labor and technology influence java s economic growth |
| topic | Economic Growth, real GDP, Capital, Labor, Technology O11, O13, O15, O16 |
| topic_facet | Economic Growth, real GDP, Capital, Labor, Technology O11, O13, O15, O16 |
| url | https://journals.ums.ac.id/index.php/JEP/article/view/18278 |
| work_keys_str_mv | AT fevrierasotya howcapitallaborandtechnologyinfluencejavaseconomicgrowth AT archintiasefira howcapitallaborandtechnologyinfluencejavaseconomicgrowth AT siwivirgiananugransih howcapitallaborandtechnologyinfluencejavaseconomicgrowth |