Determinants of Labor Productivity in APEC Countries
DOI:
https://doi.org/10.18502/kss.v9i14.16098Abstract
The labor productivity of a nation is one of the most significant determinants of economic growth. The labor productivity growth in APEC countries between 2016 and 2021 has been unstable. The objective of this research is to confirm the partial or simultaneous impact of HDI, FDI, and inflation on labor productivity in APEC countries. The research type is quantitatively descriptive and verification. The analysis carried out was a panel data regression analysis carried out using a research sample that consisted of 20 APEC countries in the years 2016–2021. The Random Effect Model (REM) is selected as the model for this research. The results indicated that the HDI of 7.32 had a marginally significant positive influence on labor productivity in APEC countries. Consequently, an FDI of 4.15 had a significantly positive impact on labor productivity in APEC countries, whereas an inflation of 0.01 had a nonsignificant positive effect on labor productivity in APEC countries. HDI, FDI, and inflation all have a significant impact on labor productivity in APEC countries.
Keywords: productivity, HDI, FDI, inflation, REM
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