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The impact of technological growth on economic performance in Indonesia

Author

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  • Hery Ferdinan

    (Department of Economics Faculty of Economics and Management Institut Pertanian Bogor)

Abstract

Technology in the globalization era is difficult to be avoided in daily life. This study aims to estimate the impact of technological growth on economic performance in Indonesia using a Total Factor Productivity (TFP) method. The results indicate that technological growth in Indonesia during 1981-2012 is 0.87 percent, contributes up to 30.48 percent to economic growth. The results of econometric analysis suggest that technological growth will increase not only economic growth but also the unemployment rate, implying that technological growth in Indonesia creates jobs destruction than jobs creation.

Suggested Citation

  • Hery Ferdinan, 2013. "The impact of technological growth on economic performance in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(1), pages 15-24, April.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:1:p:15-24
    DOI: http://dx.doi.org/10.20885/ejem.vol5.iss1.art2
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    References listed on IDEAS

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    Cited by:

    1. Sarastri Mumpuni Ruchba & Ferdy Suhada, 2015. "The impact of regional autonomy and monetary crisis on economic growth in Yogyakarta," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 60-68, April.

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    More about this item

    Keywords

    Technological growth; TFP; economic growth; unemployment rate;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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