The Effect of Economic Growth, Investment, and Urbanisation on Employment Opportunities in ASEAN

Abstract

This study aims to analyze the effect of economic growth, investment, and urbanization on employment opportunities in the ASEAN region, both in the short and long term. The variables used in this study are Economic Growth (GDP Growth), Investment (Foreign Direct Investment, net inflows) and Urbanization (Urban Population Growth) to Employment Opportunities (employment-to-population ratio). The object of this research is ASEAN. This research is quantitative and uses secondary data. The analysis technique used is Panel ARDL (Autoregressive Distributed Lag) model, which combines cross-section data (Indonesia, Malaysia, Philippines, Thailand, and Vietnam) with time series from 2000 to 2023. The results show that in the long run, economic growth and urbanization have a negative and significant effect on employment opportunities, while investment has a positive and significant effect. Meanwhile, in the short term, economic growth has a positive and significant effect on employment opportunities, but investment and urbanization do not show a significant effect.