THE IMPACT OF GOVERNMENT EXPENDITURE, HUMAN DEVELOPMENT INDEX (HDI), WORKER AND INVESTMENT ON INDONESIA’S PROVINCIAL GROSS REGIONAL DOMESTIC PRODUCT (GRDP)

Abstract

This study aims to analyze the impact of government spending, Human Development Index (HDI), worker and investment on Gross Regional Domestic Product (GRDP) in Indonesia. The data used in this study are secondary data for each province taken from the central statistical agency (BPS) and the directorate general of financial balance (DPJK). The analysis used in this research is panel data analysis with fixed effect model as the best model to describe the relationship between dependent and independent variables. The data used are data from thirtyfour Provinces in Indonesia in the period 2013-2018. The results of the analysis show that individually government spending, HDI, and investment have a significant positive effect on Gross Regional Domestic Product (GRDP), with the greatest effect on human resources. Meanwhile, worker does not have a significant effect on Gross Regional Domestic Product (GRDP) in Indonesia.