ANALYSIS OF THE IMPACT OF INVESTMENT, INFLATION, AND PROVINCIAL MINIMUM WAGE ON REGIONAL GROSS DOMESTIC PRODUCT IN CENTRAL SULAWESI PROVINCE 2018-2023.
Muhammad Farhan(1*),Edhi Taqwa (2), Santi Yunus (3)

a) Faculty of Economics and Business, Tadulako University, Jalan Soekarno Hatta 9, Palu 94148, Indonesia

Abstract

This study aims to analyze the effect of investment, inflation, and provincial minimum wage on Gross Regional Domestic Product (GRDP) in Central Sulawesi Province in 2018-2023. This study uses a quantitative method with panel data regression analysis, using secondary data obtained from the Central Statistics Agency (BPS) of Central Sulawesi. The results of the study indicate that investment has a positive and significant effect on GRDP, which means that increasing investment drives regional economic growth by creating jobs and increasing production capacity. Inflation has a negative and significant effect on GRDP, indicating that high inflation can reduce people^s purchasing power and hinder economic growth. The provincial minimum wage also shows a positive and significant effect on GRDP, indicating that an increase in UMP can increase workers^ purchasing power and household consumption, which in turn drives economic growth. The conclusion of this study is that inflation stability, increased investment, and appropriate UMP adjustments are important factors in driving economic growth in Central Sulawesi Province.

Keywords: investment, inflation, provincial minimum wage, GRDP, Central Sulawesi.

Topic: Economics