Open AccessThe INFLUENCE OF PRODUCTION FACTORS TOWARD ECONOMIC GROWTH IN INDONESIA
Author(s) -
Wilson Bangun
Publication year - 2019
Publication title -
asia proceedings of social sciences
Language(s) - English
Resource type - Journals
eISSN - 2663-6638
pISSN - 2663-662X
DOI - 10.31580/apss.v4i1.565
Subject(s) - indonesian , production (economics) , cobb–douglas production function , workforce , production function , prosperity , factors of production , ordinary least squares , economics , foreign direct investment , investment (military) , business , economic growth , political science , macroeconomics , philosophy , linguistics , politics , law , econometrics
Economic growth as a mesurement and reflect of the people prosperity. Employee production factor have a better contribution if to compare with capital and technology production factors on Indonesian economic growth. However, Indonesian workforce quality is lowest in ASEAN-5. The research methodology is using the Cobb-Douglas production function with the Ordinary Least Square (OLS), the using equation formulation: lnY = ln a + bi +e. This research using data is secondary data: production factors using data of progressing of FDI and domestic investment, source of the World Bank, 2004-2016; Employment is using data of progressing of Indonesia workforce, sourced from the Biro Pusat Statistik Republik Indonesia, 2004-2016. The research results show that influence of the production factors toward Indonesia economic growth is strongly. This researchs aim to knowledge a large the contribution of production factors on Indonesian Economic growth.