THE ANALYSIS INFLUENCE
ECONOMY GROWTH, LABOR EDUCATION LEVEL AND INTEREST RATE ON INVESTMENT IN MALUKU
PROVINCE
Teddy Christianto Leasiwal*, Bin Raudha A. Honoeboen
Faculty of Economics and
Business, Universitas Pattimura, Maluku, Indonesia
Email: [email protected]*
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Article
Information |
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ABSTRACT |
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Received:
December 18, 2022 Revised:
December 29, 2022 Approved: January 16, 2023 Online: January 26, 2023 |
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Investment
in Maluku from year to year grows slowly, compared to its potential. To
overcome the obstacles that hinder investment, the policies established by
the regional government include accelerating the development and preparation
of infrastructure supporting investment activities, creating a more conducive
investment and business climate in the regions, developing human resources,
both government and business actors in the regions. There are three variables, namely Economic
Growth, Education and Interest Rates . The method of analysis used is multiple linear regression analysis.
On result regression seen that the
growth variable economy have connection positive , this is indicated by score
coefficient as big as 5.363299 and has a significant
influence significant to investment with a probability value of 0.0005. There is a positive
relationship between the
education level of the workforce and
the level of investment with a coefficient value of 0.160310 . and very significant with a
probability value of 0.0001. The interest rate has a negative effect on investment, with a coefficient value of -1.333418 meaning that an increase in the interest
rate by 1% will also reduce investment by -1.333418
although the coefficient value is not significant. ·
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Keywords |
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Interest Rate; Economic Growth; Education; Investment |
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INTRODUCTION
Economic
growth driven by consumption tends not to be good for the economy because in
the long run it will only lead to an increase in the price level if it is
accompanied by an increase in production. In the long term, a country's economy
is said to be good if it relies on production and investment. High domestic
investment will help increase national production capacity and industrial
competitiveness. The increase in investment turned out to be compensating for
other economic factors. One of them contributed to the high rate of inflation.
The most appropriate solution
to overcome high inflation is to increase interest rates. However, high
interest rates have an impact on the high cost of capital, so that the level of investment decreases (Prasetiantono,
1995).
In some developing countries, empirical evidence shows that investment spending
is generally inelastic to interest rates. This fact shows that the cost of
paying interest rates is small relative to the total cost of investing in
developing countries (Chatak,
1981).
This fact is caused more by non-economic factors that affect the inefficiency
of interest rates on investment.
In the midst of a global and
national economic slowdown in 2014, the economy of Maluku Province was actually
able to grow 6.7 percent higher than the previous year's growth of 5.3 percent
or national economic growth of 5.0 percent. On the demand side, based on the
report of the Monitoring and Control Team Regional Inflation (TPID) Maluku
Province, Maluku's economic growth was mainly supported by components of
government consumption, household consumption and gross domestic fixed capital
formation (investment) which contributed to Maluku's economic growth of 14.42
percent, 6.00 percent and 1.10 percent.
Meanwhile, other components,
namely non-profit consumption of non-profit institutions serving households
(LNPRT), foreign exports and foreign imports contributed 0.09 percent, 0.66
percent and 0.77 percent. On the supply side, Maluku's economic growth was
supported by the performance of the categories of agriculture, forestry and
fisheries, financial services and transportation and warehousing with a share
of 0.68 percent, 0.58 percent and 0.39 percent, respectively. This is different
when using the Gross Regional Domestic Product (GRDP) with a base year of 2000,
where Maluku's economic growth is driven by the main sectors of trade, hotels
and trade (PHR), the agricultural sector and the services sector.
Then it comes to Quarter I
2020 Numbers growth Indonesian economy . If you see from year to year in the
same period (year on year/ yoy), growth Indonesia's economy in the first
quarter of 2020 against the first quarter of 2019 grew by 2.97 percent . This
thing not free from impact negative for COVID-19 which causes many restrictions
on the movement of people and movement goods so that follow hinder production ,
and distribution of the business world . Whereas if seen quarter , growth the
Indonesian economy in the first quarter of 2020 against quarterly previously
experience contraction by 2.41 percent (q-to-q).
From the side q-to-q
production , decrease caused by contractions that occur in some field effort .
From the side expenses , decrease caused by contraction of the entire component
expenditure .
However, in 2020 Maluku's
economic growth was still higher than regional economic growth of 4.01%, while
Sulampua's economic growth was recorded to grow 3.56% (yoy) in the first
quarter of 2020
In
addition, in Maluku province itself, it can be seen that the disparity in
education between regions is quite high. Ambon City, apart from being the
center of government and economic center, has a fairly good demographic composition
in terms of education, where 45.24% of the people have completed high school
education, and 15.5% are people with higher education (D1, D2, D3, D4, S1, S2).
,S3), while in the other 10 regencies/cities none of the population has a
higher education level of more than 10%.
This
will directly affect the low quality of regional development as well as the
quality of individual incomes in the region because a person's tendency to get
a job and a decent income is the level of education. The low level of education
also contributes to the increase in poverty rates in Maluku. Unequal education,
both in terms of infrastructure, in terms of teacher availability and teacher
quality also has an influence on the quality and quantity of an educated
workforce in Maluku.
Based on the data, the
realization of domestic investment in Maluku province is still very low and
tends to decline, this is partly due to the slowing absorption of local
government capital expenditures sourced from the APBN which also affects the slowing
trend in net investment in Maluku. The value of capital expenditures sourced
from the APBN is greater than the value of capital expenditures originating
from the APBD so that the capital expenditures of the APBN have a greater
impact on investment performance in the Maluku economy.
Meanwhile, the value of
foreign investment in Maluku also experienced the same thing which tended to
decline until 2018, this can be identified as the low level of foreign investor
confidence in the performance of economic actors in the Maluku region so that
it also affects the investment value, in addition to the inadequate regional
infrastructure. as a supporter of economic growth can also be categorized as a
factor that hinders the development of investment in Maluku, especially the
geographical condition of Maluku which is an archipelago.
To overcome the obstacles
that hinder investment, the policies established by the Regional Government,
among others, are the acceleration of development and preparation of
infrastructure supporting investment activities, creating a more conducive
investment and business climate in the regions, providing one-stop investment
licensing services, developing human resources, both government actors and
business actors in the regions, carry out
the effectiveness of the implementation of investment promotion activities at
home and abroad, information services via the internet, socialization to the
public, increasing control and supervision of investment in the regions, as
well as improving the quality of data and information on investment in the
regions.
The main economic forces that determine investment are the return
on investment costs determined by interest rate and tax policies, as well as
expectations about the future (Samuelson
& Nordhaus, 2009). In
macroeconomics, investment can be interpreted as public expenditure to obtain
new capital tools. Therefore, the total investment that occurs in an economy is
partly in the form of purchasing new tools to replace uneconomical capital
tools to be used again and partly in the form of purchasing new capital tools
to increase the capital stock. On the other hand, investment is defined as
expenditure from the producer (private) sector for the purchase of goods or
services to increase the stock of goods and expand the company.
Investment is one of the important components in GNP. Investment
has an important role in aggregate demand. First, investment spending is more
volatile when compared to consumption spending, so fluctuations in investment
can cause a recession. Second, that investment is very important for economic
growth as well as improvements in labor productivity. Economic growth is highly
dependent on labor and the amount of capital stock (Eni
& Siti, 2007).
Interest Rate is the price of the use of investment funds.
Interest rate is one indicator in determining whether someone will invest or
save (Boediono, 1994). If in an economy there are members of society who receive income
in excess of what they need for their consumption needs, the excess income will
be allocated or used for saving. Offers for loanable funds are formed or
obtained from the total savings of the public in a certain period. On the other
hand, during the same period, community members need funds for operations or
business expansion. The classical theory states that interest is the price of
loanable funds (investment funds) thus interest is the price that occurs in the
market and investment. According to Keynes's theory, the interest rate is a
monetary phenomenon. This means that the interest rate is determined by the
supply and demand for money (determined in the money market).
Interest
is the price of the use of loanable funds or in other terms is the price of
investment funds. According to the classical theory of interest is the price
that occurs in the investment fund market. Where in a period of people whose
income exceeds what is needed for consumption in a certain period.
0
f Loanable
Funds
w
Figure 1. Relationship
between Interest Rates and Investment
Source: Mankiw 2013
Figure
1 shows the interest rate that
balances the supply and demand for loanable funds. Under the equilibrium
conditions shown, the interest rate is r, and the quantity supply and demand
for loanable funds are both f. The adjustment of interest rates to the equilibrium
level occurs as usual. If the interest rate is lower than the equilibrium
level, the quantity supplied of loanable
funds will be lower than the quantity of loanable funds demanded. This shortage
of funds will encourage lenders to increase the interest rates they charge. On
the other hand, if the interest rate is higher than the equilibrium level, the quantity of loanable funds supplied will
be greater than the quantity of loanable funds demanded.
Keynes's theory in particular
emphasizes that there is a direct relationship between people's willingness to
pay the price of money (the interest rate) with elements of demand for money
for speculative purposes: large demand when interest rates are low, and small
demand when interest rates are high, what needs to be considered is that to
speculate in the market. In securities (as described in Keynes' theory) people
need to hold cash, and because speculating can make a profit, people are
willing to pay a certain price to hold cash for that purpose. The possibility
of profit itself arises because of uncertainty about the development of
interest rates (or bond prices) in the future. Only in an atmosphere of
uncertainty can one speculate.
There is a fundamental
difference between classical and Keynesian regarding flowers. The classic
emphasizes that with funds in the hands of an entrepreneur, he can increase his
means of production (capital) which can generate higher profits. In other
words, money can increase productivity, and it is because of this increase in productivity
that people are willing to pay interest.
According to Keynesians,
money can be productive in other ways (Boediono, 1998).
With cash in hand one could speculate in the securities market with the
possibility of making a profit. Then because of the possibility of this
advantage people are willing to pay interest. However, the two views actually
complement each other. Classics view money as investment funds (loanable funds)
which are directly linked to the possibility of increasing the production of
goods and services. Keynesians emphasize the nature of money as a liquid asset
that can be used to take advantage of opportunities to profit from the
securities market. Money is actually both a liquid asset and an investment fund
at the same time. The interest rate is the price of money resulting from the
balance between the demand and supply of investment funds (loanable funds). The
interest rate is also the price of money arising from the balance between the
demand and supply of money as a liquid asset. Post Keynes, Hicks, emphasized
that an interest rate can be said to be truly
an equilibrium interest rate for
an economy if the interest rate meets the balance in the market for investment funds (loanable
funds) and at the same time balances in the money market (as assets/assets)
with the analysis tool is the IS-LM curve .
Source:
Mankiw (2013).
Figure 2. Keynesian Intersection
Economic growth is the process of changing the economic conditions
of a country on an ongoing basis towards a better state over a certain period.
According to Simon Kuznets, economic growth is an increase in the long-term
capacity of the country concerned to provide various economic goods for its
population. David Ricardo put forward the theory of economic growth in a book
entitled The Principles of Political Economy and Taxation. According to David
Ricardo, the economic growth of a country is determined by population growth,
where increasing population will increase labor and require land or nature.
The nominal exchange rate (nominal exchange rate) is
the relative price of the currencies of two countries. When people talk about
the exchange rate, this means referring to the exchange rate between the two
countries, what is meant is the nominal exchange rate. The nominal exchange
rate is determined by the real exchange rate and the price level in the two
countries. Assuming other things remain the same, high inflation rates lead to
currency depreciation (Mankiw et al., 2007). While the real exchange rate (real exchange rate):
the relative price of goods between two countries. The real exchange rate
expresses the rate at which we can trade the goods of one country for the goods
of another country. The real exchange rate is sometimes referred to as the
terms of trade.
Education level is the stage of education that is determined based
on the level of development of students, the goals to be achieved and the
willingness to be developed. The level of education has an effect on changes in
attitudes and behavior of healthy living. A higher level of education will make
it easier for a person or society to absorb information and implement it in
daily behavior and lifestyle, especially in terms of health. Formal education
forms values for a person, especially in accepting new things (Suhardjo, 2007).
The high average level of public education is very important for the nation's
readiness to face global challenges in the future.
According to (Basrowi, 2010) education has the task of preparing human resources for
development. The pace of development steps is always pursued in tune with the
demands of the times. Meanwhile, according to (Mulyani, 2011) the development of the times always raises new problems that have
never been thought of before. Education is often interpreted as a human effort
to foster his personality in accordance with the values in society and culture.
Furthermore, education is defined as an effort carried out by someone or
another group of people to become adults or achieve a higher level of life or
livelihood in a mental sense (Hasbunallah, 2008).
Foreign Direct Investment and
Economic Growth: A Time-Series Approach Atrayee research often focuses on how
foreign direct investment (FDI) transfers technology from developed countries
to less developed countries (Ghosh Roy & Van
den Berg, 2006).
However, most FDI occurs among developed countries, and the country that
receives the largest FDI inflows is the United States. This paper examines
whether such FDI inflows have stimulated US economic growth. We apply time
series data to a simultaneous equation model (SEM) that explicitly captures the
two-way relationship between FDI and US economic growth. FDI was found to have
a significant, positive and economically important impact on US growth. In
addition, our SEM estimates reveal that FDI growth is income inelastic. These
results imply that: (1) even a technologically advanced country like the US
benefits from FDI, (2) the gains from FDI are enormous in the long run, and (3)
the sustainability of the US current account deficit enhanced by FDI has a
positive effect on productivity but is undermined. by the income inelasticity
of FDI. Overall, the results suggest that US policy should focus on keeping the
country attractive to direct investor.
Ikazaki (2006) builds an endogenous growth model
that combines the R&D sector, the education sector, and environmental issues.
First, the environmental impact is considered. We show that, if the government
implements the right policies and certain parameter constraints are met, the
per capita growth rate will be positive in the long run without harming the
environment. Second, issues related to scale effects are considered. In a
typical growth model, an economy with a larger population grows faster.
However, the scale effect has been rejected by Jones (1995). Our results show that the
population level does not affect the rate of economic growth.
The Effect of Education Level and
Investment on Economic Growth and Poverty in Bali Province (Parwa et al., 2019).
This study uses data in the form of time series for seven years, namely
2010-2016 and data cross section as many
as nine regencies/ cities
in the province of Bali. The research uses data analysis techniques, namely
path analysis. In this study it was found that the level of education and
investment has a positive and significant influence on economic growth in the
province of Bali. The level of education, investment and economic growth have a
negative and significant influence on poverty in the Province of Bali. Economic
growth partially mediates the effect of education level and investment on
poverty in Bali Province
Effect of inflation, interest rates, investment on
economic growth in Jambi Province (Nofitasari et al.,
2017). This study aims to analyze: 1) the trend of
inflation, interest rates, investment and economic growth of Jambi Province; 2)
the influence of inflation, interest rates, investment on the economic growth
of Jambi Province. The data used is secondary data for time series during the
period 2000 –2016. The data is sourced from the Central Statistics Agency of
Jambi Province and Bank Indonesia. Data analysis was carried out descriptively
and multiple regression models. The results found: 1) average inflation in
Jambi Province was 7.64 percent per year, credit interest rates were 13.67
percent per year, investment development was 15.33 percent per year, and
economic growth was 5.45 percent per year; 2) Simultaneously, inflation, credit
interest rates and investment have a significant effect on the economic growth
of Jambi Province. Partially, credit interest rates have a significant negative
effect and investment has a significant positive effect on economic growth in
Jambi Province. On the other hand, inflation has no significant effect.
Level of Manpower Education,
Government Expenditure on Education Sector, and Economic Growth in Indonesia in
2008-2012 (Wibowo & Irianto,
2015). This research was conducted by
looking at the level of education graduates, government spending and gross
domestic product per capita of the education sector based on constant prices in
2000. Especially for the period 2008-2012 with the ex post facto method. The
form of panel research data is a combination of time series and cross section
forms. Data on GDP per capita at constant prices in 2000 and the level of
education of the workforce completed are taken from the Central Statistics
Agency (BPS). Data on government spending in the education sector is taken from
data on income and state expenditures (APBN) of Indonesia for the education
sector of the Ministry of Finance of the Republic of Indonesia. Data processing
using Eviews 7.0 and Microsoft Excel. Based on the regression results, the
education variable has a positive and significant effect at a significant level
below 0.05 and the government education sector expenditure variable has a
positive and significant effect below 0.05, namely on economic growth. The
value of Fcount (7.360407) Ftable> (3.90) so that the two variables are
added together, namely the education level of the workforce and government
spending on the education sector which together affect Indonesia's economic
growth. The R2 value of 0.568211 indicates that 56.82% of economic growth in
Indonesia can be explained by the two independent variables.
The effect of interest rate on
investment; Empirical evidence of Jiangsu Province, China (Khurshid, 2015). The reason for this study is to
examine the impact of interest rates on investment in Jiangsu Province, China.
Jiangsu has the largest investment amount in China. For the long term,
Johansen's Nexus co-integration test was used. Meanwhile, the vector error
correction model (VECM) was used to find short-term associations during the
2003-2012 period. The results show that there is a long-term relationship
between the variables. It has a negative relationship in the long term but
positive in the short term. This research also produces suggestions that will
help in terms of interest rate policy as well as increase investment that
drives economic growth in Jiangsu Province.
Interest rate and Economic Growth
as Determinants of Firm Investment Decision: An Investigation on BIST listed
firms (Ayaydin & DURMUŞ,
2016). This study aims to determine the
effect of political uncertainty as a determinant of investment decisions on
company investment decisions. For this purpose, this study involved 147 BIST
(Istanbul Stock Exchange) listed companies displaying activity in the
industrial sector between 2008 and 2013. Analysis of panel data with relevant
quarterly data was used to analyze the relationship between political
uncertainty and corporate investment decisions. The results of the analysis
show that there is a statistically significant relationship between the
company's investment and the variables that represent the Regional Head
Election of 29 March 2009, the 12 June 2011 Election and the New Constitution
Referendum on 12 September 2010 as an indicator of political uncertainty. This
verifies the argument that election uncertainty can have a negative impact on
firm investment through inefficient capital allocation, and it can be said to
provide a strong message regarding the important economic effects of political
uncertainty.
Based
on the background of the problem above, this research focuses on the factors
that encourage investment in Maluku. The Purpose of study are (1) knowing
development investment in Maluku Province, and (2) analyzing the factors that
have the most influence on investment in Mauku Province
Framework
Hypothesis
Based
on the background, theories and previous research, the following hypotheses are
made:
1) It
is suspected that the growth rate economy has a positive influence on
investment in Maluku Province
2) It
is suspected that the Labor Education Level has a positive effect on investment
in Maluku Province.
3)
It is suspected that the rate of flower
negative effect on investment in Maluku Province.
METHODS
Research sites
The area covered in this
research is Maluku Province.
Data
Types and Sources
The type of data used in this
study is secondary data obtained from the Central Bureau of Statistics of
Maluku Province, BKPMD, Regional Development Planning Agency (BAPPEDA) of
Maluku Province and other sources related to this research.
Method
of collecting data
The data used in this study
is secondary data from agencies, institutions or other relevant sources. The
collected data is then processed and analyzed quantitatively.
Research
Model
1. Analysis Method
Multiple linear regression
analysis is a linear regression to analyze the magnitude of the relationship
and the influence of independent variables whose number is more than two (Purwanto & Suharyadi, 2012).
For analysis statistics , in
particular for medium country develop like Indonesia is special Maluku province is a lot face
constraint in the form of lack of data with period long time. When our talk about
investment, as done by
company multinational with score great investment so will seen impact economy
after a number of period next (decade). So, to find out the variables that
affect investment in Maluku Province, the development of models is carried out
empirical that. The model used in this study:
Multiple regression analysis with the
following formula
Y = o + 1X1 + 2X2 +β3X3 + e
Inv
= 0 + 1 EG t + 2 TPD
+ 3T B + e
Where
Inv : Investment
Tb :
Interest Rate
EG : Economic Growth
Education Tkt : Labor Education Level
e : error term
2.
R square test
Coefficient
Determination Multiple (R2) i.e big proportion or donation third variable free
to variable change bound with use formula coefficient determination
multiple. The value of R2 lies between 0 and 1. If R 2 = 1 means 100 percent
total variation variable bound
explained by the variables free and show
accuracy best . If R2 = 0 means not there are total variations variable bound
described by the variable free.
Assumption
Test Classic
1. Autocorrelation
Test
Test this is
testing assumption in regression where the variable dependent no correlated
with herself alone. Meaning correlated with with herself alone is that score
from variable dependent or variable bound no relate with score variable that
alone, fine score period previously or score period afterward.
2. Multicollinearity
Test
Assumption
multicollinearity state that variable independent must be free from symptom
multicollinearity. Symptom
multicollinearity is symptom correlation between variables independent .
Symptom this showed with significant correlation _ between variables
independent . In other words, multicollinearity means existence linear
relationship perfect or certain between a number of or all explanatory variable
_ from model regression (Gujarati,
2005).
Data Normality
Test
Normality
test conducted for test is in the regression model , variable bully or
residuals have distribution normal. Good regression model is normal
distribution or close to normal.
Variable Operations
For the purposes of measuring
the variables in order to achieve the research objectives accurately, it is necessary
to clearly define the operational limits of the research variables in order to
avoid ambiguous information and erroneous conclusions. The operationalization
limits of the variables in the research on the factors that influence
investment in Maluku Province are set as follows:
Table 1
|
Variables |
Variable Conception |
|
Investation |
Investments made by both domestic and
foreign investors (total investment in Maluku) are physical in Maluku and 11
districts/cities. Measured in terms of the amount of realization incoming
investment (in dollars/year) |
|
Interest Rate |
The interest rate is the price of using
investment funds. Which is measured by the percentage of the average interest
rate per month. |
|
Economic growth |
Economic growth
is the process of changing the economic conditions of a country on an ongoing
basis towards a better state over a certain period. |
|
Labor
Education |
Percentage of the total population of Maluku
who have a junior high school education and above. |
RESULTS
Classic
Assumption Test Results
1. Autocorrelation Test
Table 2
Breusch-Godfrey Serial Correlation LM Test
|
F-statistics |
0.476636 |
Prob.
F(2.14) |
0.6306 |
|
Obs*R-squared |
1.275001 |
Prob.
Chi-Square(2) |
0.5286 |
Based on the test results, it appears that
there are no symptoms of autocorrelation
2. Multicollinearity Test
Table 3
Variance Inflation Factors
|
|
Coefficient |
Uncentered |
Centered |
|
Variables |
Variance |
VIFs |
VIFs |
|
C |
95.20948 |
214.7110 |
NA |
|
EG |
1.524230 |
127.1969 |
1.068945 |
|
TPD |
0.000914 |
4.766308 |
1.107060 |
|
TB |
0.719486 |
46.27802 |
1.069765 |
There is no high multicollinearity because the centered VIF of all variables is
smaller than 10
3. Descriptive Statistics
Table 4
Descriptive
Statistics
|
|
EG |
INVES |
TB |
TPD |
|
Mean |
6.057500 |
10.74400 |
5.278500 |
42.14150 |
|
median |
5.940000 |
8.620000 |
5.105000 |
50.50000 |
|
Maximum |
7.1600000 |
21.40000 |
7.010000 |
70.35000 |
|
Minimum |
5.240000 |
3.750000 |
4.410000 |
10.93000 |
|
Std.
Dev. |
0.572142 |
6.034594 |
0.833075 |
23.78142 |
|
Skewness |
0.451307 |
0.655609 |
0.846351 |
-0.111288 |
|
Kurtosis |
2.304859 |
1.887870 |
2.644970 |
1.194303 |
|
|
|
|
|
|
|
Jarque-Bera |
1.081611 |
2.463439 |
2.492738 |
2.758403 |
|
Probability |
0.582279 |
0.291790 |
0.287547 |
0.251780 |
|
|
|
|
|
|
|
Sum |
121.1500 |
214.8800 |
105.5700 |
842.8300 |
|
Sum
Sq. Dev. |
6.219575 |
691.9101 |
13.18625 |
10745.57 |
|
|
|
|
|
|
|
Observations |
20 |
20 |
20 |
20 |
Processed Data Eviews 9
4. Multiple Linear Regression Results
This study uses multiple linear regression
models to analyze the effect of independent variables, namely interest rates, economic
growth, education level of the workforce on the dependent variable of
investment. Thus, the model used is as follows:
Inv = 0 + 1 EG t + 2 TPD
+ 3T B + e
Based on the
above model so results estimation is as following:
INVES = C(1) + C(2)*EG + C(3)*TPD + C(4)*TB
Substituted Coefficients:
=========================
INVES = -7.95001019534 + 5.3632986592*EG -
0.160310459356*TPD - 1.33341824567*TB
|
Dependent
Variable: INVES |
|
Sample:
2000 2019 |
|
|
Table 5
Multiple
Linear Regression
|
Variables |
Coefficient |
Std. Error |
t-Statistics |
Prob. |
|
C |
-7.950010 |
9.757534 |
-0.814756 |
0.4272 |
|
EG |
5.363299 |
1.234597 |
4.344169 |
0.0005 |
|
TPD |
0.160310 |
0.030227 |
5.303505 |
0.0001 |
|
TB |
0.848225 |
-1.572009 |
0.1355 |
|
|
R-squared |
0.794919 |
Mean dependent var |
10.74400 |
|
|
Adjusted R-squared |
0.756466 |
SD dependent var |
6.034594 |
|
|
SE of regression |
2.978022 |
Akaike info criterion |
5.197252 |
|
|
Sum squared resid |
141.8979 |
Schwarz criterion |
5.396399 |
|
|
Likelihood logs |
-47.97252 |
Hannan Quinn Criter. |
5.236128 |
|
|
F-statistics |
20.67260 |
Durbin-Watson stat |
1.681131 |
|
|
Prob(F-statistic) |
0.00009 |
|
|
|
Eviews
Processed Data 9.
5. Multiple Linear Regression Results
With an R - Squared value of 0.79, it can be
said that together or simultaneously the independent variables are able to influence
the dependent variable by 79 %, with 11
% being explained by other variables outside the existing model.
6.
Economic
Growth on Investment
On result regression could seen that the
growth variable economy have connection positive , this is indicated by score coefficient as big as 5.363299 with thereby if growth economy
increase by 1% then will increase investation
as big as 5.363299. and have a significant influence significant to investment indicated by a
probability value of 0.0005
7.
Education
level of the workforce on investment
The results of this study indicate that there
is a positive relationship between the
education level of the workforce and the level of investment in 11 regencies
and cities in Maluku with a coefficient value of
0.160310 and very significant as indicated by the probability value of 0.0001.
8.
Interest
Rate on Investment
Based on the regression results, it shows that interest rates have a negative effect on
investment, with a coefficient value of
-1.333418 meaning that an increase in
interest rates of 1% will also reduce investment by -1.333418 although the coefficient value is not
significant. Thus, it can be concluded that
the negative effect is not too
significant, this is because the
interest rate as a monetary variable is regulatory in nature because the
determination of interest rates rests with the monetary authority whose
reference is the country's macroeconomic framework and is not specific to the
development of certain regions.
CONCLUSION
Simultaneously
or together the variables of interest rates, economic growth, and education of
workers affect the investment variable by 79 %, other than that explained by
other variables outside the model.nPartially, the variable level
of education that most influences
investment, the interest rate variable has a negative relationship
with investment and is not significant,
while the variable economic growth has a positive effect or correlation on
investment growth in Maluku.
Investment
is one of the factors that greatly affects the economic growth of a region,
both in the form of direct investment and indirect investment, because in
general it has a multiplier effect
and a direct effect on the community, which will be able to
absorb labor, increase regional income which leads to improvements in people's
welfare.
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