Indonesia economic growth determinants: Generalized method of moments (Gmm) model approachment

• Noviana Yusuf, Raja Masbar, Aliasuddin Fakultas Ekonomi dan Bisnis, Universitas Syiah Kuala, Banda Aceh, Indonesia

Palabras clave: Labor, Education, Government Spending, Economic.

Resumen

This study aimed to analyze the determinants of economic growth in Indonesia by using time series data from the 1986-2017 and Generalized Method of Moments (GMM) model as a method. The results showed that government spending has a positive and significant effect on economic growth. However, employment and education have a negative and significant effect on economic growth. In conclusion, the government must improve the education in order to increase labor productivity, hence optimal economic growth can be achieved