Research Paper
Year: 2021 | Month: October | Volume: 8 | Issue: 10 | Pages: 184-195
DOI: https://doi.org/10.52403/ijrr.20211023
Analysis of the Effect of Investment, Labor Force and Infrastructure on Economic Growth in North Sumatra Province
Taufik Akbar1, Tarmizi1, Syafii1
1Department of Economics, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
Corresponding Author: Taufik Akbar
ABSTRACT
A significant amount of value investment can absorb much labor and increase public consumption to become productive. Infrastructure development is believed to facilitate the mobility of goods and people from one area to another to accelerate and streamline the economic process. The purposes of this study were to analyze the effects of the value realization of Domestic Investment, the value realization of Foreign Investment, the labor force, and infrastructure partially and simultaneously on the economic growth of North SumatraProvince. The data in this study is secondary data sources on the Statistics Indonesia (BPS) report of Province SumatraUtara, particularly the data from 1990-2019. The data examined included Gross Domestic Regional Product, Value Realization of Domestic Investment, Foreign Investment, Labour Force, and road infrastructure. The data collection method used is the method of documentation. The model used is the Ordinary Least Square (OLS) model, which is analyzed by multiple regression. The results showed that, partially, there were positive and significant effects on the value realization of Domestic Investment, labor force, and infrastructure. Meanwhile, Foreign Investment showed a positive effect but not significant. Simultaneously, the realization of Domestic Investment, the realization of Foreign Investment, the labor force, and infrastructure were positive and significant on the economic growth of North Sumatra Province at the level of α = 5%.
Keywords: value realization of domestic investment, foreign investment, labor force, infrastructure.
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