Analysis of the Effect of Consumption Expenditure, Foreign Direct Investment, and Manufacturing Industry moderated by Labor force on Growth of Economy of OIC Countries during the Covid-19 Pandemic

Abstract

ABSTRAK Pandemi COVID-19 menyebabkan pertumbuhan ekonomi global melambat. Pertumbuhan ekonomi yang dikuru melalui GDP suatu negara dipengaruhi oleh beberapa hal. OIC merupakan organisasi negara-negara muslim didunia dimana GDP mereka juga juga terdampak secara signifikan akibat pandemi COVID-19. Penelitian ini bertujuan untuk mengobservasi pertumbuhan ekonomi negara anggota OKI yang dipengaruhi oleh variabel Industri manufaktur, Penanaman Modal Asing, dan Total konsumsi yang di moderasi oleh tenaga kerja. Penelitian ini menggunakan jenis data panel. Data diambil dengan menggunakan metode purposive sampling. Penelitian ini menggunakan sampel 10 negara aggota OKI dalam rentan tahun 2018-2020. Studi ini menggunakan teknik Random Effect Model (REM) untuk melihat pengaruh hubungan variabel independen terhadap variabel dependen secara simultan maupun parsial. Hasil menunjukkan bahwa beberapa variable independen seperti total konsumsi dan Penanaman Modal Asing mampu memberikan pengaruh signifikan untuk pertumbuhan ekonomi tanpa harus dimoderasi oleh Tenaga Kerja. Sedangkan industri manufaktur ketika dimoderasi oleh tenaga kerja, justru memberikan pengaruh yang relevan kepada pertumbuhan ekonomi di beberapa negara anggota OKI saat masa pandemi Covid-19. Maka, saran kepada pemangku kepentingan diharapkan memberikan perhatian khusus terhadap sektor industri manufaktur yang sangat banyak menyerap tenaga kerja. Untuk penelitian selanjutnya, diharapkan mampu menambah jumlah sampel data jika topik yang diambil sama dengan penelitian ini karena sampel data terbatas hanya pada negara OKI dalam penelitian ini. Kata kunci: Covid-19, Pertumbuhan Ekonomi, Penanaman Modal Asing, Tenaga Kerja, OKI. ABSTRACT The COVID-19 pandemic has caused global economic growth to slow down. Economic growth measured through a country's GDP is influenced by several things. OIC is an organization of Muslim countries in the world where their GDP has also been significantly affected by the COVID-19 pandemic. This study aimed to observe the economic growth of OIC member countries which is influenced by the variables of the manufacturing industry, foreign investment, and total consumption which are moderated by labor. This research used panel data type. Data were taken using purposive sampling method. This study used a sample of 10 OIC member countries in the 2018-2020 vulnerable years. This study uses the Random Effect Model (REM) technique to see the effect of the relationship of the independent variable on the dependent variable simultaneously or partially. The results showed that several independent variables such as total consumption and foreign investment are able to have a significant influence on economic growth without having to be moderated by the labour force. Meanwhile, the manufacturing industry, when moderated by the labour force, actually has a relevant influence on economic growth in several OIC member countries during the Covid-19 pandemic. Therefore, suggestions to stakeholders are expected to pay special attention to the manufacturing industry sector which absorbs a lot of workers. For further research, it is expected to be able to increase the number of data samples if the topic taken is similar to this recent study because the data sample in this study is limited to only the OIC countries. Keywords: Covid-19, Economics Growth, Foreign Direct Investment, Labor Force, OIC. REFERENCES Almosabbeh, I. A., & Almoree, M. A. (2018). The relationship between manufacturing production and economic growth in the kingdom of Saudi Arabia. Journal of Economic Studies, 45(4), 674–690. https://doi.org/10.1108/JES-02-2017-0029 Anto, M., H. (2013). Introducing an Islamic human development index (i-hdi) to measure development in oic countries. 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