What is the share of population to the agro-industrial economy? A measure of demographic dividend in Indonesia

Abstract

This study aims to measure the share of population to economic growth, demographic dividend, in Indonesia. The analysis employed the Cobb-Douglas model. The data came from the Indonesia's National Account in 1970-2015, divided into two time spans (1970-1992 and 1993-2015). The dependent variable is the gross domestic product at current prices. The independent variables are investment, population, and employment opportunity. The demographic dividend is defined as the difference in the share of population between the first time span and second time span. It was found that the magnitude of demographic dividend through the whole population is 1.8874% and through the employment opportunity is 1.4557%. The measure of demographic dividend in this study is a new measure of demographic dividend in Indonesia.