The Influence of Capital Expenditure, Domestic Investment, and Labor on GRDP in Sulawesi Island

Abstract

This study analyses the influence of capital expenditure, domestic investment, and labour variables on Sulawesi Island's gross regional domestic product. This study uses secondary data from six provinces in Sulawesi Island. This study uses a panel data regression analysis method using the Eviews 9 application. The empirical results show that capital expenditure, domestic investment, and labour positively and significantly affect the GRDP on Sulawesi Island. Positive values in the three variables indicate that everyone percent increase in capital expenditure, domestic investment, and labour will increase GRDP by more than 2 billion rupiahs. The greater the amount of capital expenditure and domestic investment allocated by the government, the more the GRDP of a region will increase. Likewise, the workforce working in the business sector contributes to the increase in GDP.