Journal ID : TRKU-27-07-2020-10941
[This article belongs to Volume - 62, Issue - 07]
Total View : 312

Title : Modeling Economic Growth in ASEAN Countries using the Maximum Likelihood Estimation for Panel Data

Abstract :

Economic growth is one indicator to see the results of development. Positive economic growth shows an increase in a country's economy. Economic growth in real terms from year to year is calculated from the constant Gross Domestic Product. This study uses data from nine ASEAN countries during the 2008-2014 period. The panel data is analyzed using the Maximum Likelihood Estimation method. The results indicate that the best panel model specifications are fixed-effect models with significant variables affecting economic growth, namely energy consumption, financial development, urban population, and foreign direct investment with the elasticity coefficient of each variable are 0.1689, 0.1671, 1.027, and 0.0250. In addition, the model has R-Square value of 79.44%

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