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All Journal Danadyaksa: Post Modern Economy Journal
Anna Yulianita
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.
The Effects of Economic Structure on Labor Force Participation In Sumatra: Panel Data Analysis For The 2016–2025 Period Ratih Hetty Wardhani; Achmad Trisno Jati; 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.v4i2.893

Abstract

This study examines the effects of economic structure on labor force participation in ten provinces of Sumatra during 2016–2025. Using balanced panel data of 100 observations, the study applies a Fixed Effect Model (FEM). The results show that agriculture, forestry and fishing and manufacturing have positive and statistically significant effects on labor force participation, with probability values of 0.0014 and 0.0019, respectively. Mining and quarrying, construction, and wholesale and retail trade are not statistically significant. Simultaneously, the five sectors significantly affect labor force participation, with a probability value of 0.0000 and an R-squared of 0.991788. The findings indicate that the role of economic structure in labor force participation differs across sectors, with agriculture and manufacturing showing significant relationships with labor-market participation in Sumatra.
Co-Authors Achmad Trisno Jati M. Reizky Satria Latuconsina Muhammad Subardin Ratih Hetty Wardhani Sela Indra Lestari Siti Rohima Siti Rohima