The Impact of Technological Advancement, Economic Openness and Institutions on the Competitiveness of Indonesian Human Resources

Abstract

This research aims to identify and analyse the impact of technological progress, economic openness, and the impact on the competitiveness of SDM both directly and through economic growth. This research uses secondary data such as information and communication technology development index data, import exports, democracy index, PDRB. and human development index in each province, both in the Western Region of Indonesia and in the Eastern Area of Indonesia. The data is data time series 10 years (2013 – 2022). For the purposes of analysis used data panel 34 Provinces in Indonesia. The analytical techniques used are Simultaneous Equation Models (SEM) with the help of R Studio Software. The results of the research show that directly the factors of technological progress, trade openness and institutional positive and significant to the competitiveness of the SDM. Indirectly, the progress of financial technology can improve the competitive strength of SDM through economic growth other than the opennesses of the economy and institutions have not optimally propelled the competition of the SSM.