The Influence Of Economic Performance On Agricultural Regeneration And Labor Absorption (Case Study Of Smallholder Coconut Plantations In Riau Province)

Meiliza, Shelly
Rosyetti, Rosyetti
Hamid, M

Agrisocionomics: Jurnal Sosial Ekonomi Pertanian
Vol 9, No 2 (2025): June 2025

This research aims to determine the effect of total production, Farmer Exchange Rate (NTP) and Gross Regional Domestic Product (GRDP) on labor absorption in the smallholder coconut plantation subsector in Riau Province in 2012-2023. In this research, multiple linear regression techniques were used using the Ordinary Least Square (OLS) method. The research results show that the simultaneous test (F test) shows that total production, NTP and GRDP together have a significant influence on labor absorption in the coconut plantation subsector in Riau Province in 2012-2023. Meanwhile, the partial regression test (t test) shows that total production has a positive and significant effect on labor absorption, NTP has a positive and significant effect on labor absorption, and GRDP has a negative and insignificant effect on labor absorption. The results of the coefficient of determination (R2) of the independent variable on the dependent variable obtained a value of 0.973238. This means that the contribution of the independent variables (total production, NTP and GRDP) to the dependent variable (demand for employment) is 97.32% and the remaining 2.68% is influenced by other variables outside the regression model in this research.