Analysis of the Effect of Domestic Investment, Exports and Labor in the Agricultural Sector on the Economic Growth in South Sumatra Province

Nijanur Lallubada (), Bernadette Robiani and Suhel
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Nijanur Lallubada: Sriwijaya University, Palembang, Indonesia
Bernadette Robiani: Sriwijaya University, Palembang, Indonesia
Suhel: Sriwijaya University, Palembang, Indonesia

Oblik i finansi, 2021, issue 1, 122-129

Abstract: This study aims to analyze how the influence of the Domestic Investment variable in the agricultural sector, the number of workers in the agricultural sector and agricultural sector exports on economic growth in South Sumatra Province. The data used are time series data for the period 2002 to 2019. The quantitative analysis technique is in the form of multiple linear regression analysis with Ordinary Least Square (OLS) estimation. The results showed that the variable that had a significant influence was the growth of agricultural exports with a coefficient of 0.012815, which means that a 1 percent increase in agricultural exports resulted in an increase in the economic growth of South Sumatra Province by 0.0128 percent. The growth variable in the number of workers in the agricultural sector also has a significant effect with a prob value of 0.054 and an influence coefficient of 0.034019 where an increase of 1 percent in the number of workers in the agricultural sector increases economic growth by 0.0340 percent. The domestic investment variable in the agricultural sector has no significant effect on economic growth in South Sumatra. The agricultural sector continues to play a role in economic growth because it absorbs a large workforce and its contribution to Gross Regional Domestic Product is still significant. The conclusion of this study shows the reality that the agricultural sector still contributes to the economy of South Sumatra in the absorption of labor and the role of primary exports. Domestic investment in the agricultural sector has a relatively insignificant effect on economic growth, mainly due to fluctuating agricultural commodity prices which affect the expected profit levels and expectations of future economic conditions.

Keywords: economic growth; agricultural exports; domestic investment in the agricultural sector; employment in agriculture (search for similar items in EconPapers)
JEL-codes: R10 R11 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2021:i:1:p:122-129

DOI: 10.33146/2307-9878-2021-1(91)-122-129

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