Title:
THE IMPACT OF TECHNOLOGICAL PROGRESS ON INDONESIA'S GLOBAL COMPETITIVENESS: A TIME SERIES PATH ANALYSIS

Authors:
Muchdie , Prihawantoro and Sugema

Abstract:
This paper analysis direct and indirect impacts of technological progress on Indonesia's global competitiveness, with economic growth and human development as moderator variables. Time series data on technological progress, economic growth, human development and global competitiveness of Indonesia were collected many sources and employed in a path analysis model. The results showed that technological progress had a negative and significant direct impact on the global competitiveness. Technological progress had also negative and significant direct impact on human development. Furthermore, technological progress had a positive and significant direct impact on economic growth, and economic growth had positive impact on human development and negative impact on global competitiveness. Indirectly, the impacts of technological progress on global competitiveness varied depend on the path. At P43-P31, indirect impact through human development, the impact was negative and significant. At P43-P32-P21, indirect impact through human development and economic growth, the impact was positive and significant. Finally, at P42-P21, indirect impact through economic growth, the impact was negative and significant. These findings confirm other research by Author using cross-nations data.