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Determinants of labour absorption in ASEAN

Author

Listed:
  • Ari Rudatin
  • Afrigh Ghoniyyu Firmis Haq
  • Andika Ridha Ayu Perdana

Abstract

Purpose – This study aims to analyze the determinants of labor absorption in ASEAN countries.Methods – This study uses panel data analysis in 10 ASEAN countries for the period 2000-2022.Findings – This study concludes that GDP has a positive effect on labor absorption, inflation does not affect labor absorption, wages have a positive effect on labor absorption, and Foreign Direct Investment (FDI) shows a positive effect on labor absorption in ASEAN countries.Implication – This study implies that there must be a systematic policy that is oriented towards creating an integrative system in increasing labor absorption in ASEAN countries with an orientation towards policies oriented towards economic growth supported by regulations in determining wages and regulations that are integrated with foreign investment.Originality – This study contributes to the analysis of labor absorption in ASEAN using a panel data approach. AbstrakTujuan – Penelitian ini bertujuan untuk menganalisis determinant penyerapan tenaga kerja pada negara-negara di ASEAN. Metode – Penelitian ini menggunakan analisis data panel pada 10 negara ASEAN untuk periode 2000 -2022.Temuan – Penelitian ini menyimpulkan bahwa GDP memiliki efek positif terhadap penyerapan tenaga kerja, Inflasi tidak berpengaruh terhadap penyerapan tenaga kerja, upah memiliki pengaruh positif terhadap penyerapan tenaga kerja, dan Foreign Direct Investment (FDI) menunjukkan pengaruh positif terhadap penyerapan tenaga kerja pada negara di ASEAN. Implikasi – Implikasi dari penelitian ini adalah harus adanya kebijakan yang sistematis dan berorientasi kepada terciptanya sistem yang integrative dalam meningkatkan penyerapan tenaga kerja pada negara ASEAN dengan orientasi pada kebijakan terorientasi pada pertumbuhan ekonomi yang didukung dengan regulasi dalam menentukan upah dan regulasi yang terintegrasi dengan investasi asing. Orisinalitas – Penelitian ini berkontribusi terhadap analisis penyerapan tenaga kerja di ASEAN menggunakan pendekatan data panel.

Suggested Citation

  • Ari Rudatin & Afrigh Ghoniyyu Firmis Haq & Andika Ridha Ayu Perdana, 2024. "Determinants of labour absorption in ASEAN," Jurnal Kebijakan Ekonomi dan Keuangan, Jurusan Ilmu Ekonomi, Fakultas Bisnis dan Ekonomika, Universitas Islam Indonesia, vol. 3(2), pages 174-181.
    • Handle: RePEc:uii:jrjkek:v:3:y:2024:i:2:p:174-181:id:37550
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    References listed on IDEAS

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    1. Shandre Mugan Thangavelu, 2012. "Economic Growth and Foreign Workers in ASEAN and Singapore," Asian Economic Papers, MIT Press, vol. 11(3), pages 114-136, Fall.
    2. Mirza, Tasneem & Narayanan, Badri & van Leeuwen, Nico, 2014. "Impact of Chinese growth and trade on labor in developed countries," Economic Modelling, Elsevier, vol. 38(C), pages 522-532.
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