THE EFFECT OF PROVINCIAL MINIMUM WAGE, INVESTMENT, AND LABOR FORCE PARTICIPATION RATE ON ECONOMIC GROWTH IN WEST JAVA 2015-2019

Abstract

This study aims to determine the effect of provincial minimum wage, investment, and  labor force participation rate on economic growth in West Java 2015-2019. The research method used in this study is in the form of panel data from 2015 to 2019 in Regencies/Cities in West Java Province with a descriptive quantitative model. Data is presented annually obtained from BPS West Java Province. Based on the results of the partial analysis, the variables of the provincial minimum wage, investment, and labor force participation rate have a positive and significant effect on economic growth in West Java, which is seen from the probability value which is smaller than (0.05). Simultaneously all research variables have a significant effect on economic growth and have an influence shown by R² of 66.69%, indicating that all research variables can explain variable Y and the remaining 33.31% is explained by other variables outside the study.