Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
Vol 23, No 2 (2022): JEP 2022

How Capital, Labor, and Technology Influence Java’s Economic Growth

Sotya Fevriera (Faculty of Economics and Business, Universitas Kristen Satya Wacana)
Sefira Archintia (Faculty of Economics and Business, Universitas Kristen Satya Wacana)
Virgiana Nugransih Siwi (Faculty of Economics and Business, Universitas Kristen Satya Wacana)



Article Info

Publish Date
31 Dec 2022

Abstract

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.

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Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan is a scientific journal that contains the results of theoretical research and studies on economic and development issues. Managed by Department of Development Economics, Faculty of Economics and Business Universitas Muhammadiyah ...