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

Heru Irianto, Malik Cahyadin, Nidyah Widyamurti, Harini Harini, Tamat Sarmidi, Yong Sze Wei

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.

Keywords


SMEs; Economic growth; ARDL Bound Test

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

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