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All Journal Journal of Business Economics and Management
Dzahra Zhalika Lus Nizar
Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis, Universitas Lampung
Economics, Econometrics & Finance

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Peran Penanaman Modal Asing, Belanja Pemerintah Fungsi Kesehatan dan Pendidikan Terhadap Produk Domestik Regional Bruto di Indonesia Dzahra Zhalika Lus Nizar; Prayudha Ananta
Journal of Business Economics and Management | E-ISSN : 3063-8968 Vol. 3 No. 1 (2026): Juli - September
Publisher : GLOBAL SCIENTS PUBLISHER

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62379/jbem.v3i1.1892

Abstract

Regional economic disparities remain a significant challenge to economic development in Indonesia. Differences in Gross Regional Domestic Product (GRDP) across regions reflect variations in production capacity, investment realization, and government expenditure allocation in supporting regional economic development. This study aims to analyze the effects of Foreign Direct Investment (FDI), government health expenditure, and government education expenditure on GRDP in Indonesia. This study employs a quantitative approach using provincial panel data in Indonesia for the period 2011–2022. The analysis applies the Generalized Method of Moments (GMM) within a dynamic panel data framework to account for the influence of previous GRDP, regional heterogeneity, and potential endogeneity in the relationships between investment, government expenditure, and regional economic activity. This study is expected to provide empirical insights into the contributions of foreign investment and government expenditure on health and education to regional economic development. Furthermore, the findings are expected to provide a basis for formulating more effective regional economic development policies aimed at reducing economic disparities across regions.
Co-Authors Prayudha Ananta