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

• Published in: Jurnal ekonomi & studi pembangunan (Yogyakarta. Online) Vol. 24; no. 2; pp. 270 - 284
• Main Authors: Irianto, Heru, Cahyadin, Malik, Widyamurti, Nidyah, Harini, Harini, Sarmidi, Tamat, Wei, Yong Sze
• Format: Journal Article
• Language: English
• Published: Universitas Muhammadiyah Yogyakarta 07.11.2023
• Subjects: ardl bound test; economic growth; smes
• ISSN: 1411-9900; 2541-5506
• DOI: 10.18196/jesp.v24i2.19162

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.