Analysis the Effect of Household Consumption Expenditure, Investment and Labor to Economic Growth: A Case in Province of North Sumatra

Open access

Abstract

This research is important because the commencement of the Asean Economic Community (MEA) has a positive impact that is spurring the growth of investment from within and outside the country, so that domestic investment has the potential to increase which will increase the number of employment for Indonesian workers especially in province of North Sumatera.This study aims to: identify the effect of household consumption on economic growth, identify the effect of investment on economic growth, identify the influence of Labor on economic growth, and identify the effect of interest rate on economic growth . The data used in this research were secondary data in 2006-2016 in Province of North Sumatera. Data obtained from various agencies, namely: Department of Labor and Transmigration, Central Statistics Agency of Province of North Sumatra, some other sources such as journals and relevant research results. Methods of analysis using Two Stage Least Square method (TSLS). The results of this study found that: Household consumption has a positive and significant effect to economic growth, Investment has positive and significant effect to economic growth, Labor has positive and significant impact to economic growth, and Interest rate has a negative and significant effect on economic growth.

1. Aimon, H., (2013), Produktivitas Investasi Sumber Daya Manusia, Investasi Fisik, Kesempatan Kerja Terhadap Kemiskinan Dan Pertumbuhan Ekonomi di Indonesia. Jurnal Kajian Ekonomi, Vol 1. No. 2.

2. Boediono, (2001), Teori Pertumbuhan Ekonomi: Edisi I Cetakan IX. Yogyakarta: BPFE.

3. Jhingan, M.L, (2004), Ekonomi Pembangunan Dan Perencanaan. Jakarta: Raja Grafindo Persada.

4. Mankiw, N.G., (2007), Makroekonomi. Edisi Keenam. Jakarta: Erlangga.

5. Mudrajad, K., (2001), Manajemen Keuangan International: Pengantar Ekonomi. Yogyakarta: UPP AMP YPKN.

6. Nwakoby, C., Bernard, A.U., (2016), Effect of Private Sector Investment on Economic Growthin Nigeria. NG-Journal of Social Development, Vol.5, No.4.

7. Partadireja, A., (1990), Pengantar Ekonomika. Yogyakarta: BPFE.

8. Shahid, M., (2014), Impact of Labor Force on Economic Growth in Pakistan, Journals of Economic and Sustainable Development, Vol. 11, No. 4.

9. Sukirno, S., (2008), Makroekonomi: Teori Pengantar. Jakarta: Grafindo Persada.

10. Sumarsono, S., (2003), Ekonomi Manajemen Sumber Daya Manusia dan Ketenagakerjaan. Yogyakarta: Graha Ilmu.

11. Tambunan, (2011), Perekonomian Indonesia: Teoridan Temuan Empiris. Jakarta: Ghalia Indonesia.

12. Todaro, M.P., Stephen, C.S., (2005), Pembangunan Ekonomi: Edisi Kesembilan. Jakarta: Erlangga.

13. Wiranata, S., (2004), Pengembangan Investasi di Era Globalisasi dan Otonomi Daerah. Jurnal Ekonomidan Pembangunan, Vol.12, No.1.

14. Xi-xiang, S., Ling-li, D., (2013), An Empirical Analysis on The Influence of Household Consumption on Economic Growth in Hubei Province. The 19th International Conferences on Industrial Engineering Management, Springer, Berlin, Heidelberg.