Modelling Economic Growth in Indonesia Using Dynamic Data Panel Regression

The Covid-19 pandemic had a major impact on the economy with the economy slowing down and the financial system deteriorating. The value of economic growth in 2020 was -2.07%, the worst figure in the last 10 years. The aim of this research is to model economic growth in Indonesia. Variables that are thought to influence economic growth in Indonesia include population growth, banking credit and domestic investment. The data used is panel data from 34 provinces in Indonesia from 2015 to 2023. The model used is dynamic panel data regression with GMM Arellano-Bond estimation. The research results show that economic growth modeling is significantly influenced by population growth, banking credit and domestic investment both simultaneously and partially.