The Factors Influencing Economic Growth of South Sulawesi Province, Indonesia

Akhmad; Zainal Abidin; Manda H.M; Amir

doi:10.18535/ijsrm/v13i11.em05

Abstract

This study aims to analyze the factors that influence economic growth in South Sulawesi Province. Economic growth is one of the main indicators of successful regional development, which is influenced by various macroeconomic factors. The independent variables used in this study include investment, labor, government spending, inter-regional exports, and inequality, while the dependent variable is economic growth measured based on Gross Regional Domestic Product (GRDP) at constant prices. The data used is secondary data obtained from publications by the South Sulawesi Provincial Statistics Agency (BPS) from 1997 to 2024. The analysis method used is multiple linear regression to determine the effect of each variable on economic growth. The results show that investment, labor absorption, and inter-regional exports have a positive and significant effect on economic growth, while government spending has a positive but insignificant effect. This indicates that increasing investment, labor absorption, and exports play an important role in driving economic growth in South Sulawesi Province. Meanwhile, inequality has a negative and significant effect on economic growth. Therefore, equitable development is an important aspect to support inclusive economic growth in South Sulawesi Province. This study is expected to contribute to the formulation of regional economic policies oriented towards sustainable development in South Sulawesi Province.

Keywords

InvestmentLaborGovernment ExpenditureExportsInequality

References

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[refR-9] Bappelitbangda Provinsi Sulawesi Selatan. (2024). Rencana Pembangunan Jangka Panjang Daerah (RPJPD) Provinsi Sulawesi Selatan Tahun 2025-2045. bappelitbangda.sulselprov. go.idGoogle Scholar ↗

[refR-10] Cohen, S. I. 2009. Economic Systems Analysis and Policies: Explaining Global Differences,Transitions and Developments. Palgrave Macmillan, New York.Google Scholar ↗

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[refR-12] Dewi L.R., Asnawi, T.Abbas, Ratna & M. Roni. 2022. Analisis Pengaruh Modal Asing Dan Ekspor Terhadap Pertumbuhan Ekonomi Antar Provinsi Di Indonesia. Jurnal Aplikasi Ilmu Ekonomi. Volume 1, No. 2, Pp. 13-24.Google Scholar ↗

[refR-13] Donalson, L.1984. Economic Development Analysis and Policy. West Publishing Company, New York.Google Scholar ↗

[refR-14] Dornbursh, R., S. Fisher, and R.Startz. 2008. Macroeconomics. Ten Edition. Mc Graw-Hill Book Company, Tokyo.Google Scholar ↗

[refR-15] Feng X. J. Wu, & H. Yu. 2016. An Inquiry into the Influencing Factors of GDP Growth in Our Country since the Reform and Opening up—An Empirical Study Based on OLS. Model. Academic Journal of Business & Management. Vol. 5, Issue 11: 128-136, DOI: 10.25236/AJBM.2023.051120DOI ↗Google Scholar ↗

[refR-16] Gahari R.R.M & M.I Hasmarin. 2024. Do foreign investment, human development index, labor, and poverty influence economic growth in Indonesia?. Journal of Economics Research and Policy Studies, 4(2), 2024,134-145Google Scholar ↗

[refR-17] Gelgo B. & T. Hirko. 2023. IncomeInequalityandEconomicGrowthNexusinEthiopia: A CriticalReview. Journal of Economics and Sustainable Development. Vol.14, No.1,Vol.14, No.1, Pp. 15-20.Google Scholar ↗

[refR-18] Gould E D., & A. Hijzen. 2017. Inequality in the United States and Europe erodes trust among people—and can stifle economic growth. Finance & Development, Vol. 54, No. 1.Pp. 37-39.Google Scholar ↗

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[refR-20] Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw-Hill.Google Scholar ↗

[refR-21] Ikridah N & B. Ramli. 2024. Labor Absorption in the Regencies and Cities of South Sulawesi Province. Bulletin of Economic Studies (BEST) Volume 4, Nomor 2, (2024). pp. 139-151Google Scholar ↗

[refR-22] Irmayanti & A.R.Bato. 2017. Pengaruh Tenaga Kerja Dan Pengeluaran Pemerintah Terhadap Pertumbuhan. Economics, Social, And Development Studies. Vol 4 No. 1. Pp,55-66Google Scholar ↗

[refR-23] Jhingan, M. L. (2012). Ekonomi Pembangunan dan Perencanaan. Jakarta: RajaGrafindo Persada.Google Scholar ↗

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[refR-26] Nainggolan H.F., A.S. Muhajir, G. Abdullah3, J.Namara, I.R.Pusaka. 2023. Pengaruh Ekspor Impor Terhadap Pdrb Provinsi Jawa Barat 2017-2021. Jurnal Econominavolume 2, Nomor 2. Pp. 406-412.Google Scholar ↗

[refR-27] Ningrat A.P.H.m, A. Arfah & M. Arif. (2025). Pengaruh Investasi, Tenaga Kerja Dan Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi di ProvinsiSulawesi Selatan. Seiko : Journal of Management & Business. Volume 8 Issue 1 (2025) Pages 76 – 92Google Scholar ↗

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[refR-29] Prasasti D (2022). Pengaruh Investasi, Tenaga Kerja Dan Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Kabupaten & Kota Sulawesi Selatan. Jurnal Ilmu Ekonomi (JIE)Vol. 6, No. 3, Agustus2022, Pp. 478~490.Google Scholar ↗

[refR-30] Qasim S.S. 2025. Analysis Of Factors Influencing Economic Growth In West Java During The 2018-2023 Period Journal of Development Economic and Social Studies. Vol 4 No.3. P.45-55.Google Scholar ↗

[refR-31] Regina T. 2022. Analisis Faktor-Faktor Yang Mempengaruhi Pertumbuhan Ekonomi Di Indonesia. Jurnal Manajemen, Organisasi Dan Bisnis. Volume 11 Nomor 01. Hal. 36-45.Google Scholar ↗

[refR-32] Richardson, H.W . 2001. Dasar-Dasar Ilmu Ekonomi Regional. Lembaga Penerbit Fakultas Ekonomi. Universitas Indonesia, JakartaGoogle Scholar ↗

[refR-33] Romer, P. M. (1986). “Increasing Returns and Long-Run Growth.” Journal of Political Economy, 94(5), 1002–1037.Google Scholar ↗

[refR-34] Romer, D. 2012. Advanced Macroeconomics, Second Edition, McGraw-Hill Book Company Co, Singapore.Google Scholar ↗

[refR-35] Samuelson P.A and W.D. Nordhaus. 2005. Economics. Eighteenth Edition. McGrow-Hill, New York.Google Scholar ↗

[refR-36] Siregar, H. 2009. Makro-Mikro-Pembangunan: Kumpulan Makalah dan Esai. IPB Press, Bogor.Google Scholar ↗

[refR-37] Snowdon, B. dan R. V. Howard. 2005. Modern Macroeconomics: Its Origins, Development and Current State. Edward Elgar, New YorkGoogle Scholar ↗

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[refR-39] Sukirno, S. (2016). Makroekonomi Teori Pengantar. Jakarta: RajaGrafindo PersadaGoogle Scholar ↗

[refR-40] Tarigan, R. 2004. Ekonomi Regional: Teori dan Aplikasi. PT. Bumi Aksara, Jakarta.Google Scholar ↗

[refR-41] Todaro, M. P., & Smith, S. C. (2020). Economic Development. 13th Edition. Pearson Education.Google Scholar ↗

[refR-42] Wahyuni (2023). Pengeluaran Pemerintah Provinsi Dan Pengaruhnyaterhadap Pertumbuhan Ekonomi Dan Ketimpangan Pendapatan Di Indonesia. Sebatik Vol. 27No. 2. Pp. 708-715.Google Scholar ↗

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[refR-44] Zambrahtul Aini. (2023). Analisis Faktor-Faktor yang Mempengaruhi Permintaan Tenaga Kerja di Sulawesi Selatan. Riwayat: Educational Journal of History and Humanities.Google Scholar ↗

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