THE IMPLICATIONS OF DIGITAL INNOVATION AND ANALYSIS OF THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, THE WORK FORCE AND INFLATION IN INDONESIA
DOI:
https://doi.org/10.32815/ecosia.vi.5Keywords:
Digital Innovation, Economic Growth, Force Labor, Inflation, VECMAbstract
The purpose of this study is to analyse the implications of digital innovation of economic growth, labour force and inflation based on a literature study and analyse the relationship between economic growth, labour force and inflation in Indonesia. This study used secondary data obtained from the World Bank in the form of annual data with a quantitative descriptive approach using the Vector Error Correction Model (VECM). The results showed that there was no causal relationship between the labour force and economic growth nor was there a causal relationship between inflation and economic growth, but there was a one-way relationship between labour force and inflation, namely inflation affects the labour force. In the short term, there was no single variable that had a significant influence on economic growth. The labour force on economic growth in 2000-2021 in the short term had a positive and insignificant impact, while inflation on economic growth in 2000-2021 in the short term had a negative and insignificant impact, but in the long term inflation had a positive and significant impact.
KEYWORDS: digital innovation, economic growth, force labor, inflation, VECM
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