Dampak Investasi, Kinerja Ekspor, Dan Inflasi Dalam Penyerapan Tenaga Kerja Indonesia: Analisis Data Panel

Abstract

Employment is one of the countries development driving component. The synergy between employment and macroeconomics sectors in influencing labor market conditions is so important especially in the expansion of global economic integration which provide a major effect in the domestic socio-economic conditions. The expanding economics openness has given freedom to the investment and export sectors that have a major relation to the foreign sectors. The objectives of this research is to analyse the impact of FDI (Foreign Domestic Investment), export performance, and inflation on the labor absorption using panel data for all provinces in Indonesia. Panel data regression model is used to test these relationship which is Fixed Effect Model is the best regression model. The result shows that FDI and export performance have positive influences on labour absorption. While, inflation has a negative impact on the labor absorption. Based on these results, policy improvements are needed, both in fiscal and monetary policy. In the fiscal policy, the government could improve and optimize the infrastructure and easeinvestment regulations. While in the monetary policy, the synergy between the government and Bank Indonesia is still needed to maintain price stability and the demand that might impact on the condition of labor absorption