Proceedings of the 4th International Conference on Law, Social Sciences, Economics, and Education, ICLSSEE 2024, 25 May 2024, Jakarta, Indonesia

Research Article

Determinants of Micro and Small Industries on Gross Regional Domestic Product (GRDP) of Processing Industry Sector in Provinces of Java Island

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  • @INPROCEEDINGS{10.4108/eai.25-5-2024.2349483,
        author={Rodiya  Rodiya and Wahyu  Murti and Pudji  Astuty},
        title={Determinants of Micro and Small Industries on Gross Regional Domestic Product (GRDP) of Processing Industry Sector in Provinces of Java Island},
        proceedings={Proceedings of the 4th International Conference on Law, Social Sciences, Economics, and Education, ICLSSEE 2024, 25 May 2024, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2024},
        month={8},
        keywords={micro and small industries msi grdp processing industry sector inflation wages units labor income},
        doi={10.4108/eai.25-5-2024.2349483}
    }
    
  • Rodiya Rodiya
    Wahyu Murti
    Pudji Astuty
    Year: 2024
    Determinants of Micro and Small Industries on Gross Regional Domestic Product (GRDP) of Processing Industry Sector in Provinces of Java Island
    ICLSSEE
    EAI
    DOI: 10.4108/eai.25-5-2024.2349483
Rodiya Rodiya1,*, Wahyu Murti1, Pudji Astuty1
  • 1: Universitas Borobudur
*Contact email: rodiya1975@yahoo.com

Abstract

Micro and Small Industries (MSI) are part of the processing industry which is known for its labor-intensive nature and minimal capital. This research aims to examine and analyze the influence of inflation, wages, units, labor and income of micro and small industries (MSI) on the Gross Regional Domestic Product (GRDP) of Processing Industry Sector in The Provinces of Java Island. The research method used in this research is Ordinary Least Square Multiple Linear Regression and panel data. The research variables used are inflation, inflation, wages, units, labor and income of micro and small industries (MSI) which are then used as independent variables that influence the Gross Regional Domestic Product (GRDP) of Processing Industry Sector, which is used as the independent dependent variable. The research results show that inflation, wages, units, labor and income of MSI partially or simultaneously have a positive and significant effect on GRDP of processing industry sector reaching 79.91 percent.