AFEBI Economic and Finance Review
Vol. 9 No. 2 (2024): December

Affectors on the Manufacturing Sector’s Labor Absorption

Dina Hadia (Unknown)
Octafia, Sri Mona (Unknown)
Weriframayeni, Annisa (Unknown)



Article Info

Publish Date
31 Dec 2024

Abstract

Economic development that focuses on the industrial sector is a major driving force of economic growth, including in providing employment for the workforce. Therefore, this study aims to determine the effect of industrial sector investment, industrial sector wages, industrial sector GRDP, and the number of industries on labor absorption in the manufacturing industry sector in West Sumatra. The analysis method used in this study is Multiple Regression Analysis using time series data from 1996-2012. The independent variables used in this study are industrial sector investment, industrial sector wages, industrial sector GRDP, and the number of industries, while the dependent variable is labor absorption in the manufacturing sector. The results of this study show that simultaneously all four independent variables in this study have an effect on the dependent variable. However, partially, the industrial sector investment variable does not have a significant effect on labor absorption, and the industrial sector GRDP variable has a negative and significant effect on labor absorption, while the wage and number of industries variables have a positive and significant effect on labor absorption in the manufacturing industry sector in West Sumatra.

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Journal Info

Abbrev

aefr

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Economic and Finance Review (AEFR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AEFR is aimed as an outlet for theoretical and empirical research in the field of economics and to disseminate ...