ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERTUMBUHAN EKONOMI DI PROVINSI JAWA TENGAH TAHUN 2017-2021

Abstract

This study aims to measure the direction and magnitude of the effect of Investment (INV), Total Employment (EMP), Government Expenditure (GOV), District Minimum Wage (UMK), and industrial sector GRDP (PDRBI) on Economic Growth (GROWTH). The empirical study in this research is 35 districts / cities in Central Java Province for the period 2017-2021. The research method uses panel data analysis with the selected Pooled Least Square (PLS) model. The results showed that Investment (INV) had a positive effect on Economic Growth (GROWTH), District Minimum Wage (UMK) had a negative effect on Economic Growth (GROWTH), while Total Employment (EMP), Government Expenditure (GOV) and GRDP in the industrial sector (PDRBI) had no effect on Economic Growth (GROWTH). An increase in the amount of investment will increase and facilitate the production process of a business and lead to greater labor wages, the ability to meet the needs of labor or society is getting better which will show an increase in economic growth in Indonesia. Labor has no effect because the quality of labor in Indonesia is still low and can cause less development of existing industrial sector activities. Government spending is not used optimally to improve infrastructure problems and lack of government attention in supporting the improvement of the quality of labor in Indonesia.