Human Capital is the Key to the Successful Competitiveness of Countries in the Asean

Abstract

Objective: This research aims to look at competitiveness in the Asean region. Knowing the factors driving competitiveness then mapping the strength of competitiveness based on the driving factors for each country in ASEAN. So you will know which countries with high competitiveness are influenced by what factors. The results will be an illustration for other countries in ASEAN to improve these factors with the aim of increasing competitiveness. Method: The method used to determine the factors driving competitiveness is to use panel data regression with the Stata application. Then group them using main factor analysis with SPSS so that country categories are found based on the factors driving their competitiveness. The data used are 12 indicators forming independent and dependent variables. Obtained from various relevant sources. In a period of 10 years, namely 2010 to 2019. Results: The results of multivariate linear regression showed that both simultaneously and partially Human Capital Development (HCD), Human Capital - High Education (HCH), Research and Technology Development (RTD), and Social Capital – Unemployment (SCU) had a significant influence on Competitiveness. HCD has the greatest influence on competitiveness. This research can provide an illustration for each country in ASEAN that the driving factors of competitiveness needed to achieve high competitiveness are HCD and HCH because of their large influence in the regression model. Countries with very strong competitiveness also have very strong HCD and HCH factors and vice versa. This can be a consideration for each country in making policies related to increasing national competitiveness. Because high competitiveness indicates a high level of population welfare.