The Effect of Investment, Labor, and Government Spending on Economic Growth in Semarang City (2013-2022)

English

Abstract

The study's goal is to ascertain the influence of investment, workforce, as well as government spending on the economic growth of Semarang City. This study uses a quantitative method based on a multiple regression approach. The Semarang City Central Bureau of Statistics (BPS) as well as the Semarang City Regional Revenue and Expenditure Budget (APBD) provided the annual time series data from 2013 to 2022, which were used as secondary data. According to the findings, investment, laborforce, and government expenditures are as follows have a positive significant impact on the economic growth of Semarang City. The regression model's coefficient of determination R2 is 0.987, It indicates that independent variables account for 98.7% of the variation in Semarang City's economic growth, namely Investment, employment, as well as Government Spending. This research recommends that the Semarang City government can increase investment, both public and private, by providing incentives and facilitating permits, as well as developing supporting infrastructure. Apart from that. the Semarang City govemment also needs to improve the quality and quantity of the workforce by providing education and training facilities, as well as creating productive employment opportunities. Lastly, the Semarang City government also needs to optimize government spending, especially direct spending, by allocating a budget that is in line with development priorities and community needs.