Can the Demographic Bonus be a Strength or a Weakness for Economic Growth in Indonesia?

Authors

  • Dwita Sakuntala Universitas Pembangunan Panca Budi
  • Arsyaf Tampubolon Universitas Mahkota Tricom Unggul

Keywords:

Human Capital, Education, Skills, Health, GMM Panel

Abstract

This research investigates the demographic dividend as a form of human capital that has the potential to enhance economic growth across various provinces in both the western and eastern regions of Indonesia. The analysis employs panel data spanning from 2010 to 2019, covering 16 provinces situated on the islands of Sumatra and Sulawesi, sourced from the Central Statistics Bureau (BPS). The study utilizes the Arellano-Bond GMM dynamic difference panel model for its analysis. The findings indicate a positive correlation between economic growth and both human capital and physical capital in the provinces of Sumatra and Sulawesi. However, it is noteworthy that higher education has not significantly contributed to productivity improvements. In addition to educational factors, both exogenous and endogenous health variables are identified as crucial elements influencing productivity enhancement. Ultimately, the study concludes that the demographic dividend can indeed yield substantial benefits for economic growth in the selected provinces analyzed.

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Published

2024-10-21

How to Cite

Sakuntala, D., & Tampubolon, A. (2024). Can the Demographic Bonus be a Strength or a Weakness for Economic Growth in Indonesia?. International Conferance Of Digital Sciences And Engineering Technology , 1(1), 21–29. Retrieved from https://proceeding.pancabudi.ac.id/index.php/ICDSET/article/view/161