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All Journal Danadyaksa: Post Modern Economy Journal
Sela Indra Lestari
Universitas Sriwijaya, Palembang, Indonesia
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Effects of Household Consumption, Open Unemployment Rate and Domestic Investment on Regional Gross Domestic Product in 32 Provinces Of Indonesia M. Reizky Satria Latuconsina; Sela Indra Lestari; Siti Rohima; Anna Yulianita; Muhammad Subardin
Danadyaksa: Post Modern Economy Journal Vol. 4 No. 2 (2026): Post Modern Economy Journal
Publisher : Yayasan Pendidikan Islam Bustanul Ulum Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69965/danadyaksa.v4i2.891

Abstract

This study examines the effects of household consumption, open unemployment rate, and domestic investment on Regional Gross Domestic Product (GRDP) in 32 provinces of Indonesia during 2014–2025. Using secondary panel data comprising 384 observations, the study applies panel data regression with the Common Effect Model, Fixed Effect Model, and Random Effect Model. Based on the Chow, Hausman, and Lagrange Multiplier tests, the Fixed Effect Model is selected as the appropriate model. The results show that household consumption has a positive and significant effect on GRDP, while the open unemployment rate has a negative and significant effect. Domestic investment has a positive and significant effect on GRDP. Simultaneously, all three variables significantly affect GRDP. These findings highlight the importance of strengthening household consumption and local production, reducing unemployment through productive employment, and improving the quality and productivity of domestic investment to support regional economic development.
Co-Authors Anna Yulianita M. Reizky Satria Latuconsina Muhammad Subardin Siti Rohima