The Effect of Tourism Sector, Investment, and Labor on Economic Growth in Lombok Island West Nusa Tenggara Province

Abstract

This research aims to determine the effect of the tourism sector, investment, and labor on economic growth in Lombok Island West Nusa Tenggara Province. The research method used in this research is panel data from 2011 to 2022 in 5 regencies/cities in Lombok Island which include data on tourists, investment realization, labor force, and Gross Regional Domestic Product (GRDP) Based on Constant Prices. Data are presented annually obtained from BPS West Nusa Tenggara Province, BPS each Regencies/Cities in Lombok Island, Dinas Pariwisata each Regencies/Cities in Lombok Island, NTB Satu Data, and Dinas Penanaman Modal Terpadu Satu Pintu each Regencies/Cities in Lombok Island. This research used Fixed Effect Model (FEM) method. Based on the result of the partial analysis, the variable of the tourists has a positive and significant effect on economic growth in Lombok Island, investment has a negative and significant effect on economic growth in Lombok Island, and labor has a negative and insignificant effect on economic growth in Lombok Island. Simultaneously, all research variables have a significant effect on economic growth and have an influence shown by R2 of 36.87%, indicating that all research variables can explain the dependent variable, and the remaining 63.13% is explained by other variables outside the research.