Impact of Investment on Inclusive Economic Development in Indonesia BPS, Politeknik Statistika STIS
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Heterogeneity of Territories, Investment, Inclusive Economic Development, Panel Data
Abstract
The achievement of inclusive economic development in Indonesia is closely related to the government's fiscal capacity. Until now, the government budget's ability to realize inclusive economic development is still limited. Alternatively, the government can use funds sourced from investment to increase the achievement of inclusive economic development in Indonesia. The aim of this research is to measure the magnitude of the influence of the size of this investment on the level of inclusive economic development in Indonesia. This influence is then explained more specifically by paying attention to the regional classification between Western and Eastern Indonesia. In contrast to other research, this research on inclusive economic development is interpreted more comprehensively and the analysis is carried out taking into account regional heterogeneity. This research uses a quantitative approach with panel data regression analysis. The results of this research show that there is a significant and positive influence from the increase in investment value on the level of inclusive economic development. More specifically, this influence is clearly visible for Eastern Indonesia. This research also shows that investment has a more positive influence on achieving inclusive economic development compared to central government balancing funds to regions (general allocation funds and special allocation funds).
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