An Analysis of the Effect of Domestic and Foreign Investment, Labour Force and Population Rate on the Gross Domestic Regional Product of East Java in 2000-2013

Abstract

This study aimed to determine the effect of the resulting correlation of independent variables, Domestic Investment, Foreign Investment, labor force and population  rate on the dependent variable, RGDP (Regional Gross Domestic Product) of East Java in 2000-2013. The data used in this study was time series, the 2000-2013 period which were sourced from the central berau of statistic and capital investment coordinating board. This study used SPSS 17 multiple linear regression analysis method.

Results from this study showed that the effect of Domestic investment, Foreign investment, labor force and population  rate on the Gross Regional Domestic Product. This was shown by the results of the regression analysis of Adjusted R Square by 64.1% and the 36.9% remaining was affected by other factors. In this study it was explained that the Domestic investment and population rate was significant and positive affected on RGDP growth. While Foreign investment and labor force had insignificant negative effect on the growth of RGDP.

Keywords: Economic Growth, Domestic Investment, foreign investment, population rate, labor force and RGDP