Research Article
Factors Affecting Investment in the Provinces of Sumatra Island
@INPROCEEDINGS{10.4108/eai.12-11-2022.2327357, author={Desmon Desmon and Wahyu Murti and Yolanda Yolanda and Andi Surya}, title={Factors Affecting Investment in the Provinces of Sumatra Island}, proceedings={Proceedings of the 2nd Multidisciplinary International Conference, MIC 2022, 12 November 2022, Semarang, Central Java, Indonesia}, publisher={EAI}, proceedings_a={MIC}, year={2023}, month={2}, keywords={gdp; economic openness; inflation; labor; minimum wage; economic growth; investment}, doi={10.4108/eai.12-11-2022.2327357} }- Desmon Desmon
Wahyu Murti
Yolanda Yolanda
Andi Surya
Year: 2023
Factors Affecting Investment in the Provinces of Sumatra Island
MIC
EAI
DOI: 10.4108/eai.12-11-2022.2327357
Abstract
This study aims to examine the factors that influence investment in 10 provinces of Sumatra Island. The methodology used is a quantitative method with the approach of Multiple Linear Regression Model. The data used are panel data, namely cross-sectional data from 10 provinces and time series data for 16 years from 2006-2021 with a total of 1,120 samples. The independent variable (X) is gross regional domestic product, economic openness, inflation, labor, minimum wages, and economic growth, while the dependent variable (Y) is investment. The termination coefficient was 0.866, meaning that 86.6% of the variation in the dependent variable was obtained while the remaining 13.4% was caused by other factors. From hypothesis testing, it can be concluded that the independent variables, namely gross regional domestic product, economic openness, inflation, labor, minimum wages, and economic growth both together and individually have a significant effect on investment.