Impact of Labor and Health on Economic Growth in Indonesia During the COVID-19 Pandemic: A Panel Data Regression Analysis

Abstract

The aim of this research is to explore the influence of labor force and health on Indonesia's economic growth amidst the COVID-19 pandemic. Employing time series data from 2018 to 2022, alongside cross-sectional data from all Indonesian provinces, the study utilizes Panel Data Regression Analysis as its primary method of investigation. This study's findings explain the t-count value of the labor variable of 4.925582 and the value of Prob. 0.0000 (p-value 0.05), indicating that there is a positive influence of labor force (x) on economic growth (y) throughout the era of COVID-19. From formulation via the regression equation γ found that economic growth = (-22.36519) + 0.736771 labour - 0.139982 health + e. It’s showed that labor force has a positive impact on economic development, whereas health has a negative impact on economic growth. The f- test results in this analysis show that the f-statistical value is 2.352373 and the probability is 0.000257 (p 5%), implying that the Fixed Effect estimate, an independent variable consisting of labor and health combined, has a significant impact on Indonesian economic growth.