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

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Published: Nov 7, 2023
DOI: https://doi.org/10.18196/jesp.v24i2.19162
Keywords:
SMEs, Economic growth, ARDL Bound Test

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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

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.

Article Details

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
Section
Articles

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