ECONOMIC GROWTH ANALYSIS USES DYNAMIC PANEL DATA REGRESSION WITH ARELLANO-BOND GMM ESTIMATION

This research highlights the important role of economic growth in improving people's welfare. This study evaluates the influence of HDI, FDI, Poverty and Income Inequality on economic growth in Indonesia in the period 2014-2023. By applying the GMM method through the FD-GMM and SYS-GMM approaches, the results of the analysis show that HDI and Income Inequality have a significant positive influence on economic growth. Meanwhile, FDI and Poverty did not show a significant influence. This study examines the relationship between the variables studied and economic growth in Indonesia in the short and long term. It is hoped that the findings in this study can be a reference in formulating policies to encourage more optimal economic growth by strengthening the argument that policies that support productivity-based education and health improvement to meet the needs of the future workforce. Quality improvement is very important in an effort to increase economic growth.