Determinants Of Investment In Five Provinces With The Lowest Investment In Indonesia

Galuh Dwi Atmoko, Arif Andri Wibowo, Barokatuminalloh Barokatuminalloh, Aris Suprapto

Abstract


This study analyzes the factors affecting investment in the 5 provinces with the lowest investment in Indonesia. This study aims to determine the factors that influence investment in the five provinces. The research data is obtained from the literature and the Central Bureau of Statistics, using panel data from 2013-2022 with a total of 50 observations. The variables studied include investment as the dependent variable, as well as Economic Growth, HDI, Infrastructure, and Political Stability as independent variables. Data analysis was conducted using panel data regression with E-views application. The results showed that HDI and Infrastructure have a positive and significant effect on investment. In contrast, Economic Growth and Political Stability do not show significant influence. Simultaneously, all independent variables have a significant influence on investment. The implications of this research suggest the continuous improvement of human resource quality and existing infrastructure. There should be a greater focus on human development. Prioritize investment in the education and health sectors. It is necessary to draft a long-term and integrated road infrastructure development plan in line with economic and social development needs. Additionally, it is important to strengthen economic conditions supported by multiple robust sectors and a stable political environment with policies that attract investors.

Keyword : Investment, Economic Growth, Human Development Index (HDI), Infrastructure, Political Stability


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