Analysis of Factors Affecting Economic Growth in Indonesia

Abstract

In these research intend to determine the factors that influence Indonesia's growth which includes human resources and technology using time series data from 2000 to 2019. To understand the connection between advances in human resources and technology on economic growth, the researcher uses autoregressive vector analysis. The researcher uses the variables of gross domestic product, health, capital, work participation, and internet users to represent technology. The results show that the quality of human resources will affect economic growth in Indonesia and as well provide a significant boost to the workforce and health. Where the labor force or work participation and health are considered the most important factors to increase human capital. This shows that investment in human resources is very important for economic growth. The output also show that technology has no effect on economic growth. This is due to increased economic growth, and decreased government spending on research and technology.