ANALYSIS OF THE EFFECT OF INVESTMENT, GOVERNMENT CAPITAL EXPENDITURE, AND LABOR PRODUCTIVITY ON ECONOMIC GROWTH IN GORONTALO PROVINCE

Abstract

To analyze how much influence investment, government capital expenditure and labor productivity have on economic growth in Gorontalo Province The objective of this Research is to analyze the effect of investment, government capital expenditure, and labor productivity on economic growth in Gorontalo Province. The data used in this study are secondary data obtained from the statistics of Gorontalo Province and the Office of Investment, Energy and Mineral Resources, are five regencies and a city in a Gorontalo Province. It empolysa panel data multiple regression analysis with Fixed Model Effect (FEM) method. The findings of this research indicate that (1) investment positively and isignificanly affects the economic growth in Gorontalo Province from 2015 to growth 2019, meaning that every one percent increase in investment can increase economic growth in Gorontalo Province. (2) Government capital expenditure negativly and insignificantly affect the economic growth in Gorontalo Province from 2015 to 2019, meaning that every one percent increase in government capital expenditure can decline the economic growth in Gorontalo Province. (3) Labor productivity negatively and significanly affects the economic growth in Gorontalo Province from 2015 to 2019, meaning that every one percent increase in labor productivity can decline the economic growth in Gorontalo Province.