Year: 2023 | Month: September | Volume: 10 | Issue: 9 | Pages: 297-319
DOI: https://doi.org/10.52403/ijrr.20230932
The Development of Digital Technology and Its Impact on Indonesia’s Economic Growth
Ayu Gita Novianti1, Alla Asmara2
1Department of Economics, Faculty of Economics and Management, IPB University, Bogor, Indonesia
2Department of Economics, Faculty of Economics and Management, IPB University, Bogor, Indonesia
Corresponding Author: Ayu Gita Novianti
ABSTRACT
Currently, the world is in the industrial revolution 4.0 (digitalization) phase, which affects the economic conditions of each country. This study aims to analyze the development of digital technology in Indonesia and its impact on Indonesia's economic growth. Descriptive and panel data analysis for 2018-2021 are used to answer the research objectives. The study results show that Indonesia's economic growth in 2018–2021 shows fluctuating conditions. Meanwhile, the development of digitalization in Indonesia tends to increase every year. The study's results also found that the development of digital technology positively affected Indonesia's economic growth. The variables of investment, road length infrastructure, education index, and labor force participation rate also positively affect Indonesia's economic growth. In contrast, the open unemployment rate variable has a negative effect on Indonesia's economic growth
Keywords: digitalization, economic growth, infrastructure, panel data, technology
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