Analysis of Human Resource Management Contribution to Economic Growth in Indonesia
Abstract
AbstractThis study uses data from 1990 to 2023 and the Generalized Method of Moments (GMM) and Autoregressive Distributed Lag (ARDL) approaches to examine how Human Resource (HR) management contributes to Indonesia's economic growth. The analysis's findings highlight the significance of investing in health and education by demonstrating that a rise in the Human Capital Index (HCI) raises GDP per capita both immediately and over time. Furthermore, economic growth is significantly boosted by rising GDP per capita, whereas rising unemployment and inflation have the opposite effect. Remittances from migrant workers are found to contribute positively to the economy, while an increase in CO2 emissions per capita has a negative impact. Larger forest areas and efficient and sustainable water use also support economic growth. The significance of policies that integrate education is emphasized by this study, health, employment, price stability, environment, and resources to achieve sustainable economic growth in Indonesia. Suggestions for further research include analysis with a wider data period and the addition of other variables such as technology and globalization to provide more comprehensive policy recommendations.
References
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Banmairuroy, W., Kritjaroen, T., & Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation's component factors: Evidence from Thailand’s new S-curve industries. Asia Pacific Management Review, 27(3), 200-209.
Chakraborty, T., Chakraborty, A. K., Biswas, M., Banerjee, S., & Bhattacharya, S. (2021). Unemployment rate forecasting: A hybrid approach. Computational Economics, 57(1), 183-201.
Cross, D., & Swart, J. (2022). The (ir) relevance of human resource management in independent work: Challenging assumptions. Human Resource Management Journal, 32(1), 232-246.
Daneshfard, K., & Rad, S. S. (2020). Philosophical analysis of theory x and y. Journal of Management and Accounting Studies, 8(2), 44-48.
Dědeček, R., & Dudzich, V. (2022). Exploring the limitations of GDP per capita as an indicator of economic development: a cross-country perspective. Review of Economic Perspectives, 22(3), 193-217.
Demirgüç-Kunt, A., & Torre, I. (2022). Measuring human capital in middle income countries. Journal of Comparative Economics, 50(4), 1036-1067.
Doan Van, D. (2020). Money supply and inflation impact on economic growth. Journal of Financial Economic Policy, 12(1), 121-136.
Faeni, D. P. (2024). Green practices and employees’ performance: The mediating roles of green human resources management policies and knowledge development. Journal of Infrastructure, Policy and Development, 8(8), 1-10.
Harnani, S., Rusminingsih, D., & Damayanti, L. (2022). The role of human capital in education, environment, and economic. Asia Pacific Journal of Management and Education (APJME), 5(2), 87-99.
Ho, H., & Kuvaas, B. (2020). Human resource management systems, employee well‐being, and firm performance from the mutual gains and critical perspectives: The well‐being paradox. Human Resource Management, 59(3), 235-253.
Juba, O. O., Olumide, B. F., David, J. I., Olumide, A. O., Ochieng, J. O., & Adekunle, K. A. (2024). Integrating Mental Health Support into Occupational Safety Programs: Reducing Healthcare Costs and Improving Well-Being of Healthcare Workers Post-COVID-19. Revista de Inteligencia Artificial en Medicina, 15(1), 365-397.
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Khan, I., Hou, F., & Le, H. P. (2021). The impact of natural resources, energy consumption, and population growth on environmental quality: Fresh evidence from the United States of America. Science of the Total Environment, 754(1), 1-10.
Koteski, C., & Petkoski, G. (2022). Management of human resource. International Journal of Economics, Management and Tourism, 2(1), 73-83.
Li, J., Irfan, M., Samad, S., Ali, B., Zhang, Y., Badulescu, D., & Badulescu, A. (2023). The relationship between energy consumption, CO2 emissions, economic growth, and health indicators. International Journal of Environmental Research and Public Health, 20(3), 1-10.
Magerl, A., Matej, S., Kaufmann, L., Le Noe, J., Erb, K., & Gingrich, S. (2022). Forest carbon sink in the US (1870–2012) driven by substitution of forest ecosystem service flows. Resources, Conservation and Recycling, 176(1), 1-10.
Magnavita, N., Chiorri, C., Karimi, L., & Karanika-Murray, M. (2022). The impact of quality of work organization on distress and absenteeism among healthcare workers. International journal of environmental research and public health, 19(20), 1-10.
Mas’ udah, S. (2020). Remittances and lifestyle changes among Indonesian overseas migrant workers’ families in their hometowns. Journal of International Migration and Integration, 21(2), 649-665.
Mdhlalose, D. (2024). An examination of employee rewards and work environment on employee creativity and innovation. SEISENSE Journal of Management, 7(1), 21-34.
Mohamed, B. H., Ari, I., Al-Sada, M. B. S., & Koç, M. (2021). Strategizing human development for a country in transition from a resource-based to a knowledge-based economy. Sustainability, 13(24), 1-10.
Ochieng, E. M. (2023). A Study of the History Functions Roles and Challenges of Human Resources Management. Journal of Enterprise and Business Intelligence, 3(1), 54-64.
Olusola, B. E., Chimezie, M. E., Shuuya, S. M., & Addeh, G. Y. A. (2022). The impact of inflation rate on Private consumption expenditure and economic growth—evidence from Ghana. Open Journal of Business and Management, 10(4), 1601-1646.
Pageni, S. (2020). Job attitude and education attainment for professional identity. International Journal on Integrated Education, 3(11), 129-133.
Putra, A. S., Tong, G., & Pribadi, D. O. (2020). Food security challenges in rapidly urbanizing developing countries: Insight from Indonesia. Sustainability, 12(22), 1-10.
Raihan, A., & Tuspekova, A. (2022). Dynamic impacts of economic growth, energy use, urbanization, tourism, agricultural value-added, and forested area on carbon dioxide emissions in Brazil. Journal of Environmental Studies and Sciences, 12(4), 794-814.
Saks, A. M. (2022). Caring human resources management and employee engagement. Human resource management review, 32(3), 1-10.
Sinambela, E. A., Darmawan, D., & Mendrika, V. (2022). Effectiveness of Efforts to Establish Quality Human Resources in the Organization. Journal of Marketing and Business Research (MARK), 2(1), 47-58.
Sorensen, G., Dennerlein, J. T., Peters, S. E., Sabbath, E. L., Kelly, E. L., & Wagner, G. R. (2021). The future of research on work, safety, health and wellbeing: A guiding conceptual framework. Social science & medicine, 269(1), 1-10.
Stahl, G. K., Brewster, C. J., Collings, D. G., & Hajro, A. (2020). Enhancing the role of human resource management in corporate sustainability and social responsibility: A multi-stakeholder, multidimensional approach to HRM. Human resource management review, 30(3), 1-10.
Sun, H., Burton, H. V., & Huang, H. (2021). Machine learning applications for building structural design and performance assessment: State-of-the-art review. Journal of Building Engineering, 33(1), 1-10.
Szymkowiak, A., Melović, B., Dabić, M., Jeganathan, K., & Kundi, G. S. (2021). Information technology and Gen Z: The role of teachers, the internet, and technology in the education of young people. Technology in Society, 65(1), 1-10.
Tien, N. H., Ngoc, N. M., & Anh, D. B. H. (2021). Current situation of high-quality human resources in FDI enterprises in Vietnam-solutions to attract and maintain. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 31-38.
Triatmanto, B., Bawono, S., & Wahyuni, N. (2023). The contribution and influence of total external debt, FDI, and HCI on economic growth in Indonesia, Thailand, Vietnam, and Philippines. Research in Globalization, 7, 100163.
Triatmanto, B., Bawono, S., Wahyuni, N., & Yulianah, Y. (2023). The Role Of Human Capital, Structural Change, Quality Institutions In Driving Economic Growth In Indonesia. Tec Empresarial, 18(2), 902-914.
Ukhtiyani, K., & Indartono, S. (2020). Impacts of Indonesian economic growth: Remittances migrant workers and FDI. JEJAK: Jurnal Ekonomi dan Kebijakan, 13(2), 280-291.
Wachter, T. V. (2020). The persistent effects of initial labor market conditions for young adults and their sources. Journal of Economic Perspectives, 34(4), 168-194.
Widarni, E. L., & Bawono, S. (2021). Human Capital, Technology, and Economic Growth: A Case Study of Indonesia. The Journal of Asian Finance, Economics and Business (JAFEB), 8(5), 29-35.
Widarni, E. L., & Bawono, S. (2022). Improving the Quality of Human Resources through the Application of Good Psychology and Human Capital. Asia Pacific Journal of Management and Education (APJME), 5(3), 25-36.
Yanamala, K. K. R. (2022). Integrating machine learning and human feedback for employee performance evaluation. Journal of Advanced Computing Systems, 2(1), 1-10.
Zhang, D., Sial, M. S., Ahmad, N., Filipe, A. J., Thu, P. A., Zia-Ud-Din, M., & Caleiro, A. B. (2020). Water scarcity and sustainability in an emerging economy: a management perspective for future. Sustainability, 13(1), 1-10.
Adeosun, O. T., & Ohiani, A. S. (2020). Attracting and recruiting quality talent: firm perspectives. Rajagiri Management Journal, 14(2), 107-120.
Alam, S. I. (2021). Herzberg Motivation-Hygiene Fallacy in Measuring Levels of Job Satisfaction & Dissatisfaction. Research and Review: Human Resource and Labour Management, 2(2), 34-43.
Artaya, I. P., Kamisutara, M., Muchayan, A., & Deviyanti, I. G. A. (2021). Abraham Maslow's Hierarchical Need Fulfillment and Herzberg's Two-Factor Theory for Creating Worker Loyalty. The Spirit of Society Journal, 4(2), 66-75.
Awan, A. M., & Azam, M. (2022). Evaluating the impact of GDP per capita on environmental degradation for G-20 economies: does N-shaped environmental Kuznets curve exist?. Environment, Development and Sustainability, 24(9), 11103-11126.
Baktymbet, S. S., Baktymbet, A. S., & Serikkyzy, А. (2021). Assessment of human capital development and its impact on the economy of the country. Bulletin of the Karaganda university Economy series, 103(3), 4-14.
Banmairuroy, W., Kritjaroen, T., & Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation's component factors: Evidence from Thailand’s new S-curve industries. Asia Pacific Management Review, 27(3), 200-209.
Chakraborty, T., Chakraborty, A. K., Biswas, M., Banerjee, S., & Bhattacharya, S. (2021). Unemployment rate forecasting: A hybrid approach. Computational Economics, 57(1), 183-201.
Cross, D., & Swart, J. (2022). The (ir) relevance of human resource management in independent work: Challenging assumptions. Human Resource Management Journal, 32(1), 232-246.
Daneshfard, K., & Rad, S. S. (2020). Philosophical analysis of theory x and y. Journal of Management and Accounting Studies, 8(2), 44-48.
Dědeček, R., & Dudzich, V. (2022). Exploring the limitations of GDP per capita as an indicator of economic development: a cross-country perspective. Review of Economic Perspectives, 22(3), 193-217.
Demirgüç-Kunt, A., & Torre, I. (2022). Measuring human capital in middle income countries. Journal of Comparative Economics, 50(4), 1036-1067.
Doan Van, D. (2020). Money supply and inflation impact on economic growth. Journal of Financial Economic Policy, 12(1), 121-136.
Faeni, D. P. (2024). Green practices and employees’ performance: The mediating roles of green human resources management policies and knowledge development. Journal of Infrastructure, Policy and Development, 8(8), 1-10.
Harnani, S., Rusminingsih, D., & Damayanti, L. (2022). The role of human capital in education, environment, and economic. Asia Pacific Journal of Management and Education (APJME), 5(2), 87-99.
Ho, H., & Kuvaas, B. (2020). Human resource management systems, employee well‐being, and firm performance from the mutual gains and critical perspectives: The well‐being paradox. Human Resource Management, 59(3), 235-253.
Juba, O. O., Olumide, B. F., David, J. I., Olumide, A. O., Ochieng, J. O., & Adekunle, K. A. (2024). Integrating Mental Health Support into Occupational Safety Programs: Reducing Healthcare Costs and Improving Well-Being of Healthcare Workers Post-COVID-19. Revista de Inteligencia Artificial en Medicina, 15(1), 365-397.
Khan, A. A., & Ahmed, R. (2022). Effect of human capital investment on economic growth and productivity: a simulation approach. The journal of contemporary issues in business and government, 28(3), 949-963.
Khan, I., Hou, F., & Le, H. P. (2021). The impact of natural resources, energy consumption, and population growth on environmental quality: Fresh evidence from the United States of America. Science of the Total Environment, 754(1), 1-10.
Koteski, C., & Petkoski, G. (2022). Management of human resource. International Journal of Economics, Management and Tourism, 2(1), 73-83.
Li, J., Irfan, M., Samad, S., Ali, B., Zhang, Y., Badulescu, D., & Badulescu, A. (2023). The relationship between energy consumption, CO2 emissions, economic growth, and health indicators. International Journal of Environmental Research and Public Health, 20(3), 1-10.
Magerl, A., Matej, S., Kaufmann, L., Le Noe, J., Erb, K., & Gingrich, S. (2022). Forest carbon sink in the US (1870–2012) driven by substitution of forest ecosystem service flows. Resources, Conservation and Recycling, 176(1), 1-10.
Magnavita, N., Chiorri, C., Karimi, L., & Karanika-Murray, M. (2022). The impact of quality of work organization on distress and absenteeism among healthcare workers. International journal of environmental research and public health, 19(20), 1-10.
Mas’ udah, S. (2020). Remittances and lifestyle changes among Indonesian overseas migrant workers’ families in their hometowns. Journal of International Migration and Integration, 21(2), 649-665.
Mdhlalose, D. (2024). An examination of employee rewards and work environment on employee creativity and innovation. SEISENSE Journal of Management, 7(1), 21-34.
Mohamed, B. H., Ari, I., Al-Sada, M. B. S., & Koç, M. (2021). Strategizing human development for a country in transition from a resource-based to a knowledge-based economy. Sustainability, 13(24), 1-10.
Ochieng, E. M. (2023). A Study of the History Functions Roles and Challenges of Human Resources Management. Journal of Enterprise and Business Intelligence, 3(1), 54-64.
Olusola, B. E., Chimezie, M. E., Shuuya, S. M., & Addeh, G. Y. A. (2022). The impact of inflation rate on Private consumption expenditure and economic growth—evidence from Ghana. Open Journal of Business and Management, 10(4), 1601-1646.
Pageni, S. (2020). Job attitude and education attainment for professional identity. International Journal on Integrated Education, 3(11), 129-133.
Putra, A. S., Tong, G., & Pribadi, D. O. (2020). Food security challenges in rapidly urbanizing developing countries: Insight from Indonesia. Sustainability, 12(22), 1-10.
Raihan, A., & Tuspekova, A. (2022). Dynamic impacts of economic growth, energy use, urbanization, tourism, agricultural value-added, and forested area on carbon dioxide emissions in Brazil. Journal of Environmental Studies and Sciences, 12(4), 794-814.
Saks, A. M. (2022). Caring human resources management and employee engagement. Human resource management review, 32(3), 1-10.
Sinambela, E. A., Darmawan, D., & Mendrika, V. (2022). Effectiveness of Efforts to Establish Quality Human Resources in the Organization. Journal of Marketing and Business Research (MARK), 2(1), 47-58.
Sorensen, G., Dennerlein, J. T., Peters, S. E., Sabbath, E. L., Kelly, E. L., & Wagner, G. R. (2021). The future of research on work, safety, health and wellbeing: A guiding conceptual framework. Social science & medicine, 269(1), 1-10.
Stahl, G. K., Brewster, C. J., Collings, D. G., & Hajro, A. (2020). Enhancing the role of human resource management in corporate sustainability and social responsibility: A multi-stakeholder, multidimensional approach to HRM. Human resource management review, 30(3), 1-10.
Sun, H., Burton, H. V., & Huang, H. (2021). Machine learning applications for building structural design and performance assessment: State-of-the-art review. Journal of Building Engineering, 33(1), 1-10.
Szymkowiak, A., Melović, B., Dabić, M., Jeganathan, K., & Kundi, G. S. (2021). Information technology and Gen Z: The role of teachers, the internet, and technology in the education of young people. Technology in Society, 65(1), 1-10.
Tien, N. H., Ngoc, N. M., & Anh, D. B. H. (2021). Current situation of high-quality human resources in FDI enterprises in Vietnam-solutions to attract and maintain. International Journal of Multidisciplinary Research and Growth Evaluation, 2(1), 31-38.
Triatmanto, B., Bawono, S., & Wahyuni, N. (2023). The contribution and influence of total external debt, FDI, and HCI on economic growth in Indonesia, Thailand, Vietnam, and Philippines. Research in Globalization, 7, 100163.
Triatmanto, B., Bawono, S., Wahyuni, N., & Yulianah, Y. (2023). The Role Of Human Capital, Structural Change, Quality Institutions In Driving Economic Growth In Indonesia. Tec Empresarial, 18(2), 902-914.
Ukhtiyani, K., & Indartono, S. (2020). Impacts of Indonesian economic growth: Remittances migrant workers and FDI. JEJAK: Jurnal Ekonomi dan Kebijakan, 13(2), 280-291.
Wachter, T. V. (2020). The persistent effects of initial labor market conditions for young adults and their sources. Journal of Economic Perspectives, 34(4), 168-194.
Widarni, E. L., & Bawono, S. (2021). Human Capital, Technology, and Economic Growth: A Case Study of Indonesia. The Journal of Asian Finance, Economics and Business (JAFEB), 8(5), 29-35.
Widarni, E. L., & Bawono, S. (2022). Improving the Quality of Human Resources through the Application of Good Psychology and Human Capital. Asia Pacific Journal of Management and Education (APJME), 5(3), 25-36.
Yanamala, K. K. R. (2022). Integrating machine learning and human feedback for employee performance evaluation. Journal of Advanced Computing Systems, 2(1), 1-10.
Zhang, D., Sial, M. S., Ahmad, N., Filipe, A. J., Thu, P. A., Zia-Ud-Din, M., & Caleiro, A. B. (2020). Water scarcity and sustainability in an emerging economy: a management perspective for future. Sustainability, 13(1), 1-10.
Published
2024-12-31
How to Cite
TANTOWI, Ahmad.
Analysis of Human Resource Management Contribution to Economic Growth in Indonesia.
REVITALISASI : Jurnal Ilmu Manajemen, [S.l.], v. 13, n. 2, dec. 2024.
ISSN 2657-1684.
Available at: <https://ejournal.uniska-kediri.ac.id/index.php/Revitalisasi/article/view/6540>. Date accessed: 15 jan. 2025.
doi: https://doi.org/10.32503/revitalisasi.v13i2.6540.
Section
Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License
