The impacts of worker and total sales of SMEs on economic growth in Central Java Province: Evidence from ARDL Bound Test

Authors

  • Heru Irianto The Center for Micro, Small and Medium Entreprises and Cooperative Studies, Universitas Sebelas Maret, Central Java
  • Malik Cahyadin Department of Economics, Faculty of Economics and Business, Universitas Sebelas Maret, Central Java
  • Nidyah Widyamurti The Center for Micro, Small and Medium Entreprises and Cooperative Studies, Universitas Sebelas Maret, Central Java
  • Harini Harini The Center for Micro, Small and Medium Entreprises and Cooperative Studies, Universitas Sebelas Maret, Central Java
  • Tamat Sarmidi School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia
  • Yong Sze Wei Department of Economics, Faculty of Business and Management, Universiti Teknologi MARA

DOI:

https://doi.org/10.18196/jesp.v24i2.19162

Keywords:

SMEs, Economic growth, ARDL Bound Test

Abstract

This study attempts to examine the impact of workers and total sales of SMEs on economic growth in Central Java Province throughout 2009:1 – 2020:4. The ARDL Bound Test is employed. The findings reveal that worker and total sales have a positive, significant, and linear impact on economic growth in the short-run. Total sales also have a positive, significant, and linear impact on economic growth in the long-run. Conversely, there is no evidence of workers' impact on economic growth. In addition, workers and total sales have a long-run cointegration on economic growth. Therefore, the local government of Central Java Province should emphasize the contribution of SME workers and total sales to stimulate economic growth in the long-run.

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Published

2023-11-07

How to Cite

Irianto, H., Cahyadin, M., Widyamurti, N., Harini, H., Sarmidi, T., & Wei, Y. S. (2023). The impacts of worker and total sales of SMEs on economic growth in Central Java Province: Evidence from ARDL Bound Test. Jurnal Ekonomi &Amp; Studi Pembangunan, 24(2), 270–284. https://doi.org/10.18196/jesp.v24i2.19162

Issue

Vol. 24 No. 2: October 2023

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Articles

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