ANALYSIS OF FACTORS AFFECTING ECONOMIC GROWTH IN WEST SUMATERA

Abstract

By                   : JOHAN

Advisor I         : Dr. Alvis Rozani, S.E, M.Si

Advisor II       : Helmawati, S.E, M.Si

SUMMARY

Economic growth in economic development is very important, because equity without economic growth means dividing or poverty leveling. While economic development is to say prosperity and it can only happen if economic growth is high enough, beyond the population growth.

Glasson (1997), states that the theory of long-term regional economic growth must take into account the factors analyzed in the short term, with the sum of these factors constant. Ie like the population, wages, prices, technology and income distribution. The mobility of factors, especially labor and capital, should be a very important consideration.

This study aims to see the effects of the labor force, investment and inflation on economic growth in West Sumatra. The data used in this study is the time series data for 18 years from 1998 until 2015, the method of analysis used in this study is multiple linear regression (Mutiple Linear Regression). by using eviews 8.

From the results of this study indicates that the labor force has a positive and significant relationship to economic growth, investment has a fositive and significant relationship to growth, inflation has a positive and significant relationship to economic growth in West Sumatra.

Keywords: Economic Growth, Labor Force, Investment and Inflation.