Endogenous Growth Amidst the Turbulent Times: Contemplative Approaches to Preserve Economic Resilience in the Face of Global Uncertainty

Abstract

The surveillance of economic health amidst global uncertainty is crucial. It provides an understanding of macroeconomic conditions that can be used as a basis for formulating public policies and developing appropriate strategies to address economic issues. This quantitative research aims to investigate endogenous growth strategies that can be used to achieve sustainable economic resilience in the face of global economic uncertainty post-COVID-19, particularly through R&D. The dataset employed in this scholarly investigation is derived from the World Bank, spanning the years from 1990 to 2022, and is specifically relevant to the context of Indonesia. The research method employed is the Autoregressive Distributed Lag (ARDL) approach. This method analyzes the impact of independent variables such as FDI Net Inflows, Human Development Index (HDI), Life Expectancy, and R&D on Total Factor Productivity (TFP), which is a measure of a country's economic efficiency. The results show that Life Expectancy, FDI Inflows, and R&D have a significant positive impact on TFP. Therefore, policies that support R&D and technological innovation are often considered factors in achieving sustainable long-term economic growth.