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August 13, 2025

The Effect of Investment, Labor Absorption Rate, and Education Level on Economic Growth in Central Java Province

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Authors

RRRahmawati RahmawatiUniversitas Informatika dan Bisnis IndonesiaDRDijan RahajuniJenderal Soedirman UniversitySSSuharno SuharnoJenderal Soedirman University

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Overview

Panel data analysis shows domestic investment and education level boost economic growth in Central Java, suggesting local policy improvements.

Key Points

  • Economic growth in Central Java is significantly influenced by domestic investment and education level, while foreign investment has no notable effect.
  • The analysis indicated that a 10% increase in education levels can support regional growth, correlating with better employment opportunities.
  • Employing a fixed effects model, the study analyzed data from 35 regencies/cities to assess the impact of various factors on growth from 2021 to 2024.
  • Highlighting the need for improved investment climates and education quality, local governments can drive economic advancements effectively.

Cite This Study

Rahmawati et al. (2025) studied this question.

synapsesocial.com/papers/68af7df87567bf4f94ff505dhttps://doi.org/10.32424/icsema.1.1.349
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