The Impact Of Mean Years Of Schooling And Patent Applications On GDP Per Capita With Labor Productivity As A Mediating Variable In Asean-4

Abstract

This study examines the effect of mean years of schooling and patent applications on GDP per capita in ASEAN countries, both directly and indirectly through labor productivity as a mediating variable. All variables were transformed into natural logarithms (ln), and the analysis employed path analysis based on panel data regression, consisting of two structural equations. Structural Model 1 estimates the effect of the independent variables on the mediating variable, while Structural Model 2 estimates the effect of both the independent variables and the mediating variable on the dependent variable. Based on model selection tests, the Random Effect Model (REM) was selected for Structural Model 1, and the Fixed Effect Model (FEM) was selected for Structural Model 2. The results show that mean years of schooling (RRLS) has a positive and significant effect on GDP per capita, both directly and indirectly through labor productivity. This indicates that education contributes to economic output mainly through its role in enhancing labor productivity. Patent applications also show a positive and significant effect on GDP per capita, both directly and indirectly. Although smaller in magnitude than education, this confirms that innovation activity supports economic growth in ASEAN primarily through labor productivity gains. Overall, labor productivity serves as a key mediating channel linking human capital and innovation to GDP per capita across ASEAN countries, with indirect effects outweighing direct effects for both variables.