The Effects of Investment, Labor Productivity, Household Consumption, Government Spending, and Technology on Economic Growth in Southeast Sulawesi

Ahmad Mubaraq1; Muh. Natsir2; Tajuddin3; La Ode Suriadi4; Muhammad Syarif5; Heppi Millia6; Muh. Yani Balaka7; Saemu Alwi8; Muh. Nur Afiat9; Zainuddin Saenong10; Lapipi11


Abstract

This study aims to analyze the influence of investment, labor productivity, household consumption, government expenditure, and technology on the economic growth of regencies/cities in Southeast Sulawesi Province. This study uses secondary data from the Central Bureau of Statistics in the form of panel data covering 17 regencies/cities in Southeast Sulawesi Province for the period 2017-2024. The analysis method used is panel data regression to determine the influence of independent variables on the dependent variable. The results of the study indicate that partially investment has a positive and significant effect on economic growth, labor productivity has a positive and significant effect on economic growth, household consumption has a positive and significant effect on economic growth, government expenditure has a positive and significant effect on economic growth, technology has a positive and significant effect on economic growth. Simultaneously, investment, labor productivity, household consumption, government expenditure, and technology have a significant effect on economic growth in Southeast Sulawesi Province. The implication is that regional economic development policies must be focused on increasing investment effectiveness, developing skills and workforce competitiveness, strengthening people's purchasing power through stable household consumption, and managing government expenditure efficiently and productively. In addition, the use of technology in various economic sectors is also an important catalyst in increasing productivity and innovation. Therefore, the regional government is expected to formulate a comprehensive development strategy, encompassing improvements in human resource quality, fiscal policy reform, support for digital transformation, and the creation of a conducive investment climate. With this approach, Southeast Sulawesi Province has significant potential to achieve sustainable economic growth.  

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