THE EFFECT OF PROVINCIAL MINIMUM WAGE, INVESTMENT AND LABOR FORCE PARTICIPATION RATE ON ECONOMIC GROWTH IN CENTRAL JAVA

Abstract

This study aims to determine the effect of provincial minimum wage, investment and labor force participation rate on economic growth in Central Java. The research method used in this study is in the form of panel data from 2015 to 2019 in Regencies/Cities in Central Java Province with a descriptive quantitative model. Data is presented annually obtained from BPS Central Java Province. Based on the results of the partial analysis, the variables of the provincial minimum wage and investment have a positive and significant effect on economic growth in Central Java, which is seen from the probability value which is smaller than (0.05). Variable of the labor force participation rate have a positive but not significant effect on economic growth in Central Java, which is seen from the probability value greater than (0.05). Simultaneously all research variables have a significant effect on economic growth and have an influence shown by R² of 82.49%, indicating that all research variables can explain variable Y and the remaining 17.51% is explained by other variables outside the study.