Research Article
Factors Affecting Economic Growth and Its Impact on Unemployment in the ASEAN Member Countries
@INPROCEEDINGS{10.4108/eai.16-4-2022.2320074, author={Hendrawati Hendrawati and Wahyu Murti and Yolanda Yolanda}, title={Factors Affecting Economic Growth and Its Impact on Unemployment in the ASEAN Member Countries}, proceedings={Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2022}, month={8}, keywords={economic growth; foreign direct investment (fdi); investment in the manufacturing industry sector; borrowing interest rates; bank credit; international tourist; unemployment}, doi={10.4108/eai.16-4-2022.2320074} }- Hendrawati Hendrawati
Wahyu Murti
Yolanda Yolanda
Year: 2022
Factors Affecting Economic Growth and Its Impact on Unemployment in the ASEAN Member Countries
ICLSSEE
EAI
DOI: 10.4108/eai.16-4-2022.2320074
Abstract
The economic growth of ASEAN member countries can be seen from the Gross Domestic Product (GDP) aggregately. The high value of the Gross Domestic Product (GDP) of a country is assumed that the economic condition of a country is also good. The low economic growth as seen from the real Gross Domestic Product (GDP) is always associated with rising unemployment. When real Gross Domestic Product (GDP) grows more slowly or falls, the unemployment rate rises. The data analysis techniques used in this research is descriptive statistics, stationarity test, regression, and panel data analysis. The results show that: (1) Foreign Direct Investment (FDI), investment in the manufacturing industry sector, borrowing interest rates, banking credit, and international tourist both simultaneously and partially have a positive and significant impact on economic growth in the ASEAN member countries; (2) economic growth has a significant and negative effect on unemployment; (3) the findings of the first study state that the magnitude of the influence of Foreign Direct Investment (FDI), investment in the manufacturing industry sector, borrowing interest rates, banking credit, and international tourist on economic growth in the ASEAN member countries is 47.25 percent; and (4) the next finding is that the variable of bank credit become the most dominant variable in influencing economic growth in the ASEAN member countries.