Panel data analysis reveals foreign direct investment and manufacturing boost economic growth in Indonesia, highlighting policy recommendations.
Key Points
Foreign direct investment and the manufacturing industry positively influence economic growth in Indonesia, while labor and government spending have minimal impact.
The study analyzes secondary panel data from 34 Indonesian provinces during 2018-2023, demonstrating investment is critical for growth.
Using panel data regression with the Common Effect Model reveals significant insights into the factors driving economic development.
These findings suggest focused policy development on foreign investment and workforce education to enhance sustainable economic growth.