ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI OUTPUT SEKTOR PERTANIAN DI PROVINSI JAWA TENGAH TAHUN 2017- 2021

Abstract

This study aims to measure the direction and magnitude of the influence of Agricultural Sector Investment (INVSP), Regional Minimum Wage (UMR), Agricultural Sector Land Area (LANDSP), and Agricultural Sector Production (PSP) on Agricultural Sector GDP (PDRBSP) in Central Java. The empirical study of this research is 35 districts / cities in Central Java in 2017-2021 and data obtained from the Central Java Statistics Agency (BPS). The analytical method used in this research is panel data analysis. The research findings show that the Fixed Effect Model (FEM) was chosen as the best estimated model, with the Regional Minimum Wage (UMR) and Agricultural Sector Land Area (LANDSP) having a positive effect on the Agricultural Sector GRDP (PDRBSP). Agricultural Sector Investment (INVSP) and Agricultural Sector Production (PSP) have no effect on the GRDP of the Agricultural Sector (PDRBSP). Investment in the agricultural sector in Central Java is still inadequate and allocated to the right projects or programs so that it is not able to encourage agricultural sector output growth. The regional minimum wage in Central Java through the mechanism of increasing people's purchasing power and the effect of increasing wages in the agricultural sector is able to trigger an increase in output in the agricultural sector. Land area is still a very important production factor for the agricultural sector to ensure increased production in the agricultural sector. The production of the agricultural sector which has no influence on the increase in production of the agricultural sector shows the low exchange rate of agricultural products compared to products of other sectors.