Factors Affecting Economic Growth in Central Java

Abstract

Economic growth is an indicator of the success of the development. Increasing economic growth in Central Java will be realized if the government can implement the right policies. Research on factors that influence economic growth can be used as a reference in making government policies in the economic field. The results of the study using multiple regression in 2008.Q1-2016.Q4 are Foreign Direct Investment (FDI), Domestic Investment (DI), Consumer Price Index (CPI), Health Index (HI), Education Index (EI), and the Gross Regional Domestic Product previous year (GRDP (-1)) was able to explain economic growth in Central Java by 99.9 percent. FDI and GRDP (-1) have a positive and significant effect on economic growth. HI, negative and significant effect on economic growth. DI, CPI, and EI are not significant for economic growth.