Impact of credit on agriculture and industrial processing

Abstract

The study aims to analyze the impact of credit on GRDP in the potential economic sector in South Sulawesi Province, which was carried out with two research methods, namely the panel data linier regression method and simple linier regression. Sector credit data refers to the classification of economic sectors which have contributed to the largest GRDP. The data used is panel data from 2008 to 2017 in the Province of South Sulawesi. The results the study state that in general the potential economic sector credit has no significant effect on the GRDP of potential economic sectors in South Sulawesi Province. The increase or decrease in credit does not significantly influence the increase or decrease in the GRDP of potential economic sectors. However, this does not apply if partially analyzed between potential economic sector loans and potential economic sector GRDP in South Sulawesi Province from 2008 to 2017. Shows that the effect of credit on the GRDP of the four potential economic sectors (agriculture; industrial processing; trade; construction) each has a positive and significant effect. This shows that the banking sector in South Sulawesi Province in distributing loans is partially partial depending on the characteristics of banks in lending or in this case the bank does not specifically classify potential economic sectors or potential economic sectors in lending.