The Role Of Education In Encouraging The Economy In The Digital Age From The Viewpoint Of Human Capital Theory And Cobb-Douglas Production Function

Abstract

This research seeks to learn more about the Cobb-Douglas production function using the Human Capital Theory approaches in the digital era that focuses on information and communication technology. In this study, we use secondary data from the world bank with a research period from 1990 to 2020 in 10 countries in Southeast Asia that are members of the ASEAN organization, and to estimate the equations that we have built, we use the SYS GMM panel data. We found that education plays an important role in the development of the digital economy in the Southeast Asia region. Human capital is a vital factor in intellectual-based economic development in the digital era combined with the right government policies. Job participation is the main driver of the economy in the digital era, reinforced by sufficient human capital, as well as the availability of capital to encourage production and create economic growth. Internet literacy does not guarantee economic growth without the presence of human capital and community work participation in the economy.