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Submission last date: 15th November 2024

Determinants of gross regional domestic product and its impact on community welfare in Java Island

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Author: 
Sat Yudha Dahana, Darwati Susilastuti, Heru Subiyantoro and Herry Wira Wibawa
Page No: 
6932-6937

The relationship between Foreign Investment, Domestic Investment, Poverty, Minimum Wage, Local Original Income To Regional Domestic Product And The Impact Of Gross Regional Domestic Product On Community Welfare, With A Period Of 2010-2021 For 6 Provinces In The Java Archipelago. The analysis technique uses Ordinary Least Squares Regression (OLS) with the selection of the best model through theChow Test and the Hausman Test with the results being Fixed Effect Model. In order for the model to be precise and valid, A Classical Assumption Test is carried out. From the selected model, it was found that Foreign Investment, Domestic Investment, Provincial Minimum Wage, Local Original Income had a significant and positive effect on Gross Regional Domestic Product with an inelastic relationship and Poverty had a significant and negative effect. While the Gross Regional Domestic Product has a significant and positive effect on people's welfare. The amount of variation of the variables Foreign Investment, Domestic Investment, Poverty, Minimum Wage, Local Original Income Affects the Gross Regional Domestic Product is 89.81 percent and the rest is influenced by variables that are not studied in this study.

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