Proceedings of the 2nd Multidisciplinary International Conference, MIC 2022, 12 November 2022, Semarang, Central Java, Indonesia

Research Article

Factors Affecting Investment in the Provinces of Sumatra Island

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  • @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
Desmon Desmon1,*, Wahyu Murti1, Yolanda Yolanda1, Andi Surya2
  • 1: Universitas Borobudur, Indonesia
  • 2: Mitra Indonesia University Lampung, Indonesia
*Contact email: desmon@umitra.ac.id

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.