ANALYSIS OF THE INFLUENCE OF THE DIGITAL ECONOMY AND LABOR FORCE PARTICIPATION LEVEL ON ECONOMIC GROWTH IN INDONESIA
DOI:
https://doi.org/10.24252/icor.v7i01.66082Abstract
This study examines the influence of e-commerce transaction value, the number of internet users, and the labor force participation rate on Indonesia's economic growth in the 2019–2023 period. The data used is panel data sourced from the Central Statistics Agency (BPS) and analyzed using an OLS-based panel data regression model. The model selection indicates that the Fixed Effect Model is the most appropriate model. The results found that all three variables simultaneously have a significant effect on economic growth. Partially, e-commerce has a positive but insignificant effect, while internet users and the labor force participation rate have a negative but significant effect. These findings indicate that the use of digital technology has not fully supported economic growth. This study emphasizes the importance of increasing digital literacy, equalizing internet access, and strengthening the quality of the workforce so that the digital economy can make a greater contribution.
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