ISSN 2776-110X
The Role of Technology Development and Economic Infrastructure in the Development Efforts of the Welfare of the Indonesian People Hasan Mustofa.
Ema Sulisnaningrum (STIE Jaya Negara Tamansiswa Malan.
Abstract This study aims to examine the role of technological developments and economic infrastructure in developing the welfare of the Indonesian people.
This study uses secondary data from world banks and processed regression using the moving average autoregression method.
We find that Economic Infrastructure and Technology Development are positively related to gross domestic product which reflects the welfare of the Indonesian people.
The estimation results indicate that when the economic infrastructure is upgraded based on high technology, it will encourage economic growth as indicated by the growth of gross domestic product which in turn will bring welfare to the people.
When the economic infrastructure is upgraded based on high technology, it will encourage economic growth, which is indicated by the growth of gross domestic product which in turn brings prosperity to the people.
Keywords: Technology.
Indonesia.
Economic Growth JEL Classification: C0.
J24.
J64 Background The development of technology in Indonesia is increasingly massive.
Technological developments play a role in increasing production and facilitating human life and work (Putranto et al,2.
Infrastructure is very important in supporting economic activity.
Economic activity has an impact on economic growth or gross domestic product that reflects people's welfare.
Infrastructure makes economic activity run better and increases economic growth (Mohmand et al,2.
This study aims to examine the role of technological developments and economic infrastructure in developing the welfare of the Indonesian people.
We use the hypothesis or temporary conclusion that the development of technology and infrastructure can promote economic growth.
Literature review Technology plays a role in improving the performance of human resources because the role of technology is to facilitate human work and make human work complete faster and better.
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Technological development is in the form of efforts to develop technology so that it has an increasingly positive impact (Latzer,2.
Economic infrastructure is a public good that is held by the government in supporting population activities, including economic activities.
Government investment in infrastructure has resulted in increased support for economic activity.
When economic activity goes well, the economy can grow well (Batool & Goldmann,2.
Economic growth is indicated by an increase in gross domestic product.
Gross domestic product is the total economic value of all goods and services produced domestically.
Economic growth will have an impact on increasing public opinion so that it has an impact on improving people's welfare (Banerjee et al,2.
Research methods This research studies the role of technological developments and economic infrastructure in developing the welfare of the Indonesian people.
This study uses secondary data from world banks and processed regression using the moving average autoregression method with the following equation:
GDPt = Ct 1TIt1 2Gt2 et Where.
GDP = Gross Domestic Product C = Constant TI = Technology Development G = Economic Infrastructure e = Error Term All financial data is calculated in USD.
Results and Discussion The estimation results are as follows:
GDP = 53052088846.
83065634917 * G 23.
9559408062 * TI
From the estimation results.
Economic Infrastructure and Technology Development have a positive relationship with gross domestic product that reflects the welfare of the Indonesian people.
The estimation results indicate that when the economic infrastructure is upgraded based on high technology, it will encourage economic growth as indicated by the growth of gross domestic product which in turn will bring welfare to the people.
Table 1 illustrates the estimation results as follows:
Table 1.
Estimation Results Variable R-squared Coefficient Std.
Error t-Statistic Prob.
31E 10
14E 10
Mean dependent var 6.
24E 11
ISSN 2776-110X
Adjusted R-squared of regression Sum squared resid Log likelihood F-statistic Prob(F-statisti.
35E 10
41E 21
dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter.
Durbin-Watson stat
39E 11
Based on the estimation results described in Table 1.
, it can be seen that the R-square is quite high, 995701 so that the quantitative calculation results show a 99% level of truth.
Figure 1.
Shows the forecasting of economic growth in Indonesia.
Figure 1.
Forecasting Economic Growth in Indonesia
2E 12
0E 12
0E 11
0E 11
0E 11
0E 11
0E 00
GDPF
Forecast: GDPF
Actual: GDP
Forecast sample: 2000 2019
Included observations: 20
Root Mean Squared Error
17E 10
Mean Absolute Error
64E 10
Mean Abs.
Percent Error Theil Inequality Coefficient 0.
Bias Proportion Variance Proportion Covariance Proportion 0.
Theil U2 Coefficient Symmetric MAPE A 2 S.
Source: Author Computing From the results of forecasting, it can be seen that economic growth in Indonesia is experiencing very rapid growth by taking into account technological developments and economic infrastructure in the process of building forecasts of economic growth.
This shows that when the economic infrastructure is upgraded based on high technology, it will encourage economic growth as indicated by the growth of gross domestic product which in turn brings prosperity to the people.
Conclusion When the economic infrastructure is upgraded based on high technology, it will encourage economic growth, which is indicated by the growth of gross domestic product which in turn brings prosperity to the people.
Reference: