THE IMPACT OF ECONOMIC GROWTH, EXPORT PERFORMANCE AND FDI TOWARDS THE NUMBER OF LABOR OF MANUFACTURING SECTOR IN INDONESIA

SAFITRI, DIANA (2012) THE IMPACT OF ECONOMIC GROWTH, EXPORT PERFORMANCE AND FDI TOWARDS THE NUMBER OF LABOR OF MANUFACTURING SECTOR IN INDONESIA. S2 thesis, Universitas Andalas.

Text (Thesis Full Text) OK S2 PascaSarjana Ekonomi 2012 Diana Safitri 0810514019.pdf - Published Version Restricted to Repository staff only Download (0B)

Abstract

This study aims to examine the impact of economic growth, export performance, and foreign direct investment (FDI) on employment in the manufacturing sector in Indonesia, both before and after the implementation of the ASEAN Free Trade Area (AFTA). The analysis employs the Ordinary Least Squares (OLS) method using time series data from 1992 to 2010. The dependent variable in this study is the number of labor employed in the manufacturing sector (L), while the independent variables include economic growth (GDP), export performance (EX), and foreign direct investment (FDI). The empirical results indicate that economic growth and export performance have a positive and significant effect on employment in the manufacturing sector. In contrast, foreign direct investment shows a negative but insignificant effect on employment. These findings suggest that economic growth and export performance play an important role in increasing employment in Indonesia’s manufacturing sector, particularly in the period following the implementation of AFTA.

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