The purpose of the present research was to find out the effect
of domestic investment and inflation on gross domestic regional product of East
Java. The population of the study was the domestic investment, inflation, and
gross domestic regional product of East Java, whereas the sample was the value
of domestic investment, inflation, and gross domestic regional product of East
Java in 1998-2007. The data collection technique was documentation. Statistical
analyses of multiple linier regression and correlation were used in the data
analysis. The results showed that the domestic investment and inflation
simultaneously had a significant impact on gross domestic regional product of
East Java. Moreover, inflation was the more dominant factor affecting the gross
domestic regional product of East Java.
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