The Role Of Human Capital, Structural Change, Quality Institutions In Driving Economic Growth In Indonesia
DOI:
https://doi.org/10.1229/tecempresarialjournal.v18i2.308Keywords:
Human Capital, Structural Change, Quality Institutions, Economic Growth.Abstract
The primary goal of this study is to determine how human capital, structural change, and institutional quality affect Indonesia's long-term economic growth. We examine the cointegration connection between variables for the time span 1990–2021 using the Autoregressive Distributed Lag (ARDL) limit testing technique applied to time series data. We found that Indonesia's human capital drives Indonesia's economic growth. Likewise, structural changes that support the industry drive Indonesia's economic growth, this demonstrates how shifting away from the primary sector and toward a more modern and sophisticated industrial base tends to promote economic growth. However, long-term economic growth in Indonesia is not influenced by institutional quality. A long-term development plan with industrialization and structural change at its heart merits consideration in order to support Indonesia's long-term economic growth. Human resources are the key to Indonesia's economic development which needs to be continuously improved. Research related to institutional quality needs to be studied further in future studies.
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