Identification of Domestic Investment (PMDN), Exports, Government Expenditures, and Economic Growth

Abstract

This study aims to describe and identify the independent variables (domestic investment (PMDN), exports, and state spending) that affect the dependent variable (economic growth). The research took the location of East Java using a time series period through the website of the Central Statistics Agency for 2012-2021. The data analysis method of this study used the classic assumption test, hypothesis testing and data was processed through EViews. The use of this program makes it easier for researchers to analyze detailed data. So that the results of data processing are easy to describe as a whole. Simultaneous test results obtained X1 (PMDN), X2 exports, and X3 government spending affecting Y East Java's economic growth. The partial test results show that: 1) X1 (PMDN) does not significantly affect economic growth; 2) X2 (Exports) does not significantly affect economic growth; and 3) Government spending significantly influences economic growth. Identification of variables found that the variable that influences significantly and positively is government spending.