The Role of Information Technology in Increasing Labor Productivity in North Sumatra
Keywords:
Information Technology, TPAK, Investment, GDP, Regional Economic GrowthAbstract
The development of information technology is one of the important factors in encouraging regional economic dynamics in the digital era. This study aims to analyze the role of Information Technology Users, Labor Force Participation Rates, and Investment in explaining changes in Gross Regional Domestic Product (GDP) in North Sumatra Province. This study uses a quantitative approach with time series data during the period 2010–2024. The analysis method used is multiple linear regression. The results of the study show that simultaneously Information Technology Users, Labor Force Participation Rate, and Investment are significant to GDP. Partially, Information Technology Users were positively and significantly related to GDP, while Labor Force Participation and Investment Levels did not show a significant relationship. The Adjusted R Square value of 0.341 indicates that 34.1 percent of the variation in GDP can be explained by variables in the model, while the rest is influenced by other factors outside the study. These findings affirm the importance of the role of information technology as the main driver of regional economic activities, as well as the need to improve the quality of labor and investment effectiveness to encourage sustainable economic growth.
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