Analysis of Factors Influencing Economic Growth in Central Java Province in 2017-2021

Abstract

This study aims to analyze the effect of the regional minimum wage (UMR), human development index (IPM), labor force participation rate (TPAK) and poverty on economic growth in districts/cities in Central Java Province during the period 2017 - 2021. The analytical tool used in this study, namely panel data regression. The data used in this study are time series and cross section data obtained from the Central Bureau of Statistics (BPS) of Central Java. The model chosen in this study is REM. Based on the results of the analysis, it is known that the UMR has a positive and significant relationship, HDI has a positive and significant relationship, while TPAK has a negative and not significant relationship, meanwhile, poverty has a negative and significant relationship. Based on the research that has been done, the government can increase the UMR and liveability as well as guarantee public education to increase economic growth.