Analysis of Factors Affecting Economic Growth in the SMEs Sector in Indonesia

DOI

10.2991/assehr.k.201124.071How to use a DOI?

Keywords

Small and Medium Enterprises (SMEs), Investment, Exports

Abstract

The role of SMEs has an essential meaning for an area, especially in the expansion of employment and the drivers of economic growth, including export activities. The purpose of this study was to analyze the effect of SME units, the value of SME investment, and the value of SME exports on Indonesia’s economic growth. This study’s analysis model refers to the basic model of multiple linear regression equations with the Error Correction Model method in estimating the short-term and long-term relationship between the SME, Investment, and Export variables with GDP in Indonesia. Error Correction Model (ECM) analysis results on the estimation results using the Error Correction Model method obtained ECT (Error Correction Term) with a negative sign and significant at α = 5%, then the model is valid to be used. Because the error correction model is declared valid if the ECT value obtained is significant and has a negative mark, in model 1 an R2 value of around 0.996 or 99.6% can be said that the types of independent variables entered in the model are very good, because only 0.4% the diversity of dependent variables that are influenced by independent variables outside the model and it can be said that in the short and long term the variables used in this study significantly influence economic growth.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Raihan Nuari
AU  - Muhammad Fitri Rahmadana
AU  - Zahari Zen
PY  - 2020
DA  - 2020/11/25
TI  - Analysis of Factors Affecting Economic Growth in the SMEs Sector in Indonesia
BT  - Proceedings of the 5th Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL 2020)
PB  - Atlantis Press
SP  - 338
EP  - 343
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201124.071
DO  - 10.2991/assehr.k.201124.071
ID  - Nuari2020
ER  -