ANALYSIS OF THE FACTORS DRIVING ECONOMIC GROWTH IN CENTRAL JAVA

Abstract

The economy of a region is assessed based on its economic growth which is one of the important benchmarks in assessing the progress of a region, where the economy of a region is getting better if its economic growth is accelerting. This study aims to analyze four sectors that affect economic growth in Central Java province, namely education, labor, foreign direct investment,and district/city minimum wages. Is a quantitative study using secondary data from BPS for the period 2017-2023 with panel data regression analysis with STATA 17 software. The model chosen in this study is the Fixed Effect Model(FEM). The results showed that education has a negative and insignificant relationship with economic growth, labor has a significant positive effect on economic growth, foreign direct investment has a significant positive effect on economic growth, and district/city minimum wages have a significant positive effect on economic growth