Human Resource in Economics Development

Abstract

This study aims to determine the contribution of production factors to Indonesia's economic growth. Economic growth can be used as a measure of development that reflects the welfare of the people of a country. The sources of economic growth used in this study use the production factors approach, namely capital, labor, and technology. Labor production factors make the largest contribution compared to capital and technology production factors to Indonesian economic growth. However, the quality of Indonesia's human resources is the lowest compared to ASEAN. To measure the contribution of each factor of production to Indonesia's economic growth, the Neo Classical economic growth model proposed by Abramovit and R.M. Solow by using the Cobb Douglas production function which has been changed in the multiple regression equation. The results of this study indicate that there is a strong influence between labor and capital factors on GDP.