Pendekatan Regresi Data Panel untuk Pemodelan Jumlah Angkatan Kerja dan Penanaman Modal Luar Negeri terhadap PDRB Provinsi di Indonesia

Abstract

Indonesia is a country with great economic potency. Indonesia has a vast area and abundant natural products, but until now Indonesia is still a developing country. The Indonesian economy is defeated by other countries such as Japan, China and South Korea even by the neighboring country, Singapore. Increasing the national economy can be started from improving the regional economy which can be measured by gross regional domestic product (GRDP). Indonesia will experience a demographic bonus in 2045 so that the population of productive age is expected to contribute a lot to economic growth. The large number of productive age population must be balanced with the availability of jobs so that this momentum can be fully utilized. Foreign investment can be a solution when domestic capital is insufficient in financing economic activities. In addressing this phenomenon, a statistical analysis of panel data regression was conducted to see the relationship between independent variables, namely the number of labor force and realization of foreign investment, and a dependent variable, namely GRDP at constant prices in 2010 for every province in Indonesia. We use time series data in 2015-2017 and cross-sectional data of 34 provinces in Indonesia taken from BPS official website. The estimation result shows that both independent variables partially and fully have a significant effect on the GRDP with an adjusted R² of 99.86%.

Keywords: Labor force; regression; panel data; foreign capital; GRDP.