Financial Sector and Social Sector Models as Activator of Economic Growth in Indonesia



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Submitted Jul 2, 2022
Published Jul 28, 2022
10.24018/ejbmr.2022.7.4.1543

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This study focuses on financial problems and social problems related to economic growth in developing countries. Research variables include the creative industry, education level, foreign direct investment, population growth, wages, and economic growth. Economic growth is an economic problem in the long run, because changes in economic growth determine the progress or development of the economy in a country. Economic growth is the process of changing the economic condition of a country that continuously leads to a better condition in a certain period. The analysis method used is multiple regression with available time series data. The results of the study, simultaneously, from the financial variables and social variables mentioned above, affect economic growth. However, there are 2 (two) insignificant partial by variables, namely the creative industry and foreign direct investment. Thus, the level of education, population growth and wages are significant to economic growth, these three factors require special attention from policy makers, especially the issue of education level, population growth and wages, so that economic growth continues to increase as expected.

Keywords: Creative Industries, Education Level, Foreign direct investment, Population Growth, Wages and Economic Growth

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