Human capital, unemployment, FDI, labor productivity and gross domestic product
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Published:
May 31, 2024
Keywords:
FDI, Gross Domestic Product, Human Capital, Labor Productivity, Unemployment
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Economy
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Abstract
The economic performance of a country can be evaluated by looking at Gross Domestic Product, which is considered one of the most significant measurement. The factors that drive economic growth are Human Capital, Unemployment, FDI, and Labor Productivity. China, Japan, South Korea, India and Australia have important roles not only in their strategic location but also rapidly developing into regional economic centers in the world. The purpose of this study was to analyze the effect of Human Capital, Unemployment, FDI, Labor Productivity on Gross Domestic Product in these countries of China, Japan, South Korea, India and Australia using cross section data for 10 years from 2010 to 2019. The results show that Human Capital and FDI have a positive and significant effect on Gross Domestic Product. While other variables have no significant effect on Gross Domestic Product. These findings show that the key factors influencing economic growth are investments in education, training, human resource development, and foreign direct investment
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Indrajaya, D. and Driyastutik, W. (2024) “Human capital, unemployment, FDI, labor productivity and gross domestic product ”, Jurnal Mantik, 8(1), pp. 381-389. doi: 10.35335/mantik.v8i1.5075.
References
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Razia, A., Omarya, M., Razia, B., Awwad, B., & Ruzieh, A. (2023). Examining how unemployment, inflation and their related aspects affected economic growth in Palestine: The period from 1991 to 2020. Heliyon, 9(11), e21081. https://doi.org/10.1016/J.HELIYON.2023.E21081
Ridha, M. R., & Budi, N. (2020). The effect of foreign direct investment, human development and macroeconomic condition on economic growth: Evidence from Indonesia. Journal of Indonesian Applied Economics, 8(2), 46–54.
Shaban, A., & Khan, S. (2023). Cultural diversity, human capital, and regional economic growth in India. Regional Science Policy & Practice, 15(5), 973–992. https://doi.org/10.1111/RSP3.12528
Sultana, T., Dey, S. R., & Tareque, M. (2022). Exploring the linkage between human capital and economic growth: A look at 141 developing and developed countries. Economic Systems, 46(3), 101017. https://doi.org/10.1016/J.ECOSYS.2022.101017
Triatmanto, B., Bawono, S., & Wahyuni, N. (2023). The contribution and influence of total external debt, FDI, and HCI on economic growth in Indonesia, Thailand, Vietnam, and Philippines. Research in Globalization, 7, 100163. https://doi.org/10.1016/J.RESGLO.2023.100163
Wong, C. (2020). China declares victory as 15 nations sign world’s biggest free-trade deal. In South China Morning Post. https://www.scmp.com/news/china/diplomacy/article/3109939/china-declares-victory-15-asian-nations-sign-worlds-biggest
Yu, X., Dilanchiev, A., & Bibi, S. (2024). Enhancing labor productivity as a key strategy for fostering green economic growth and resource efficiency. Heliyon, 10(3), e24640. https://doi.org/10.1016/j.heliyon.2024.e24640
Zhang, Y., Kumar, S., Huang, X., & Yuan, Y. (2023). Human capital quality and the regional economic growth: Evidence from China. Journal of Asian Economics, 86, 101593. https://doi.org/10.1016/J.ASIECO.2023.101593
Ardin, G. (2023). Okun’s law, Phillips curve and its effect on the growth of income tax article 21 payments during covid-19 pandemic. Scientax: Jurnal Kajian Ilmiah Perpajakan Indonesia, 4(2). https://doi.org/doi: 10.52869/st.v4i2.426
Delgado, M. S., Henderson, D. J., & Parmeter, C. F. (2014). Does education matter for economic growth? Oxford Bulletin of Economics and Statistics, 76(3), 334–359. https://doi.org/https://doi.org/10.1111/obes.12025
Doré, N. I., & Teixeira, A. A. C. (2023). The role of human capital, structural change, and institutional quality on Brazil’s economic growth over the last two hundred years (1822–2019). Structural Change and Economic Dynamics, 66, 1–12. https://doi.org/10.1016/J.STRUECO.2023.04.003
Emsina, A. A. (2014). Labour Productivity, Economic Growth and Global Competitiveness in Post-crisis Period. Procedia - Social and Behavioral Sciences. https://doi.org/156.10.1016/j.sbspro.2014.11.195.
Estrades, C., Maliszewska, M., Osorio-Rodarte, I., & Seara e Pereira, M. (2023). Estimating the economic impacts of the regional comprehensive economic partnership. Asia and the Global Economy, 3(2), 100060. https://doi.org/10.1016/J.AGLOBE.2023.100060
Faisal, F., Rahman, S. U., Chander, R., Ali, A., Ramakrishnan, S., Ozatac, N., Ullah, M. N., & Tursoy, T. (2021). Investigating the nexus between GDP, oil prices, FDI, and tourism for emerging economy: Empirical evidence from the novel fourier ARDL and hidden cointegration. Resources Policy, 74, 102368. https://doi.org/10.1016/J.RESOURPOL.2021.102368
Indrajaya, D. (2021). Analysis of cointegration and VECM of FDI, labor force, government expenditure and GDP in Indonesia (2005-2019). International Journal of Economics Development Research (IJEDR), 2(1), 65–77. https://doi.org/10.37385/ijedr.v2i1.265
Indrajaya, D., & Iskamto, D. (2023). Do fund’s village, economic growth, inequal income distribution, unemployment rate, and human development index affect poverty in Indonesia? (Issue Scbtii). Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-292-7_15
Jiao, L., Zhou, D., & Xu, R. (2024). Resource dynamics and economic expansion: Unveiling the asymmetric effects of natural resources and FDI on economic growth with a lens on energy efficiency. Resources Policy, 89, 104611. https://doi.org/10.1016/J.RESOURPOL.2023.104611
Jin, X., Jiang, W., Fang, D., Wang, S., & Chen, B. (2024). Evaluation and driving force analysis of the water-energy?carbon nexus in agricultural trade for RCEP countries. Applied Energy, 353, 122143. https://doi.org/10.1016/J.APENERGY.2023.122143
Maasoumi, E., Racine, J., & Stengos, T. (2007). Growth and convergence: A profile of distribution dynamics and mobility. Journal of Econometrics, 136(2), 483–508. https://doi.org/10.1016/J.JECONOM.2005.11.012
Magazzino, C., & Mele, M. (2022). Can a change in FDI accelerate GDP growth? Time-series and ANNs evidence on Malta. The Journal of Economic Asymmetries, 25, e00243. https://doi.org/10.1016/J.JECA.2022.E00243
Mahadevan, R., & Nugroho, A. (2019). Can the regional comprehensive economic partnership minimise the harm from the United States–China trade war? The World Economy, 42(11). https://doi.org/https://doi.org/10.1111/twec.12851
Mura, L., Zsigmond, T., Kovacs, A., & Baloghova, É. (2020). Unemployment and GDP relationship analysis in the visegrad four countries. Online Journal Modelling The New Europe. https://doi.org/10.24193/OJMNE.2020.34.06
Niken, K., Haile, M. A., & Berecha, A. (2023). On the nexus of inflation, unemployment, and economic growth in Ethiopia. Heliyon, 9(4), e15271. https://doi.org/10.1016/J.HELIYON.2023.E15271
Pasara, M. T., & Garidzirai, R. (2020). Causality effects among gross capital formation, unemployment and economic growth in South Africa. Economies, 8(2). https://doi.org/https://doi.org/10.3390/economies8020026
Petrovi?-Ran?elovi?, M., Ra?enovi?, T., Krsti?, B., & Mi?i?, V. (2020). Does the level of human capital matter for FDI in the western balkan countries? Acta Oeconomica, 70(3). https://doi.org/https://doi.org/10.1556/032.2020.00019
Rahman, M. R., Rahman, M. M., & Akter, R. (2023). Renewable energy development, unemployment and GDP growth: South Asian evidence. Arab Gulf Journal of Scientific Research. https://doi.org/https://doi.org/10.1108/AGJSR-04-2023-0152
Razia, A., Omarya, M., Razia, B., Awwad, B., & Ruzieh, A. (2023). Examining how unemployment, inflation and their related aspects affected economic growth in Palestine: The period from 1991 to 2020. Heliyon, 9(11), e21081. https://doi.org/10.1016/J.HELIYON.2023.E21081
Ridha, M. R., & Budi, N. (2020). The effect of foreign direct investment, human development and macroeconomic condition on economic growth: Evidence from Indonesia. Journal of Indonesian Applied Economics, 8(2), 46–54.
Shaban, A., & Khan, S. (2023). Cultural diversity, human capital, and regional economic growth in India. Regional Science Policy & Practice, 15(5), 973–992. https://doi.org/10.1111/RSP3.12528
Sultana, T., Dey, S. R., & Tareque, M. (2022). Exploring the linkage between human capital and economic growth: A look at 141 developing and developed countries. Economic Systems, 46(3), 101017. https://doi.org/10.1016/J.ECOSYS.2022.101017
Triatmanto, B., Bawono, S., & Wahyuni, N. (2023). The contribution and influence of total external debt, FDI, and HCI on economic growth in Indonesia, Thailand, Vietnam, and Philippines. Research in Globalization, 7, 100163. https://doi.org/10.1016/J.RESGLO.2023.100163
Wong, C. (2020). China declares victory as 15 nations sign world’s biggest free-trade deal. In South China Morning Post. https://www.scmp.com/news/china/diplomacy/article/3109939/china-declares-victory-15-asian-nations-sign-worlds-biggest
Yu, X., Dilanchiev, A., & Bibi, S. (2024). Enhancing labor productivity as a key strategy for fostering green economic growth and resource efficiency. Heliyon, 10(3), e24640. https://doi.org/10.1016/j.heliyon.2024.e24640
Zhang, Y., Kumar, S., Huang, X., & Yuan, Y. (2023). Human capital quality and the regional economic growth: Evidence from China. Journal of Asian Economics, 86, 101593. https://doi.org/10.1016/J.ASIECO.2023.101593
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