Abstract
This study aims to analyze the effectS of the COVID-19 pandemic, labor, domestic direct investment (DDI), AND foreign direct investment (FDI) on economic growth in Indonesia. The type of data used in this study is panel data, which is a combination of cross-section and THE time series data (Silvia, 2020). The cross-section data involves 34 provinces and time-series data covers the period from the first quarter of 2018 to the second quarter of 2021. The result found out that the regression coefficient of labor has a positive and significant effect at the 5 percent level, which means that if the number of workers increases by 1 percent, economic growth will increase by 0.03 percent. Furthermore, the FDI variable also has a significant and positive effect on economic growth in Indonesia. We can see in table 3.2 that the FDI variable is significant at the 5 percent level with a regression coefficient of 0.012, this means that an increase in FDI by 1 percent will accelerate economic growth by 0.012 percent. From the results of data processing obtained by the author, it can be seen that the DDI variable has a positive but not significant effect on economic growth in Indonesia, this can be seen from the p-value which is greater than 5 percent. The regression coefficient of -0.001 proves that the COVID-19 pandemic has a negative impact on economic growth in Indonesia. When the COVID-19 pandemic reached the territory of Indonesia, economic growth slowed by 0.001 percent.
Highlights
At the end of 2019, to be precise on December 31, 2020, China announced the first case of Coronavirus Disease (COVID-19)
This study aims to analyze the effects of the COVID-19 pandemic, labor, domestic direct investment (DDI), foreign direct investment (FDI) on economic growth in Indonesia
From the results of data processing obtained by the author, it can be seen that the DDI variable has a positive but not significant effect on economic growth in Indonesia, this can be seen from the p-value which is greater than 5 percent
Summary
At the end of 2019, to be precise on December 31, 2020, China announced the first case of Coronavirus Disease (COVID-19). According to WHO, the COVID-19 pandemic is caused by a coronavirus called SARS-CoV-2. This type of virus can cause several respiratory diseases in humans, such as the common cold to other more dangerous and serious diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). According to Burki (2020), These two diseases print a fairly high mortality rate every year. Based on data reported by WHO (2021), until July 21, 2021, the total number of deaths caused by this virus reached 4.1 million people and increased to 7,000 per day worldwide. In addition to a fairly high death rate, this virus is spreading so fast. Confirmed cases until July 21, 2021, reached 191 million cases worldwide with daily cases reaching 300 thousand cases per day (WHO, 2021)
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More From: International Journal of Global Operations Research
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