Ahsan, Nur Muhammad
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Analysis of Economic Growth: The Implementation of Classical and Neo-Classical Economic Growth Theories Ahsan, Nur Muhammad; Maskie, Ghozali
Contemporary Studies in Economic, Finance and Banking Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study aims to analyze the factors influencing economic growth in Java. The variables used in this study are population growth, inflation, workforce, and investment. This study uses classical and neo-classical economic growth theories. The scope of this study is Java, which consists of six provinces. The data analysis method used in this study is panel data regression. The number of samples used in this study was 36 samples. The results of the study indicate that the variables of population growth, workforce, and investment do not have a significant effect on economic growth. Meanwhile, the inflation variable has a significant effect on economic growth. Theoretically, the results of this study contradict classical and neo-classical economic growth theories. These findings indicate that quantity alone is not enough to drive economic growth and it is crucial to consider the quality aspects of productivity and efficiency. Practically, development policies should focus on improving the quality of human resources and the effectiveness of investment.