Analysis of the Factors Influencing the Purchasing Power of the Community in Java Island

Yeni, Yeni
Wahed, Mohammad

Journal of Regional Economics and Development
Vol. 3 No. 2 (2026): February

This study aims to analyze the influence of several factors on the purchasing power of communities in each province on the island of Java. The type of data used in this research is secondary data, specifically panel data from 2017 to 2023. The research method is descriptive with a quantitative approach, and the estimation model employed is panel data regression. The results of the study indicate that the independent variables, namely the provincial minimum wage and consumer credit, have a significant effect on the purchasing power of communities in Java. Meanwhile, other independent variables such as inflation, per capita income, investment, and government expenditure do not have a significant effect on purchasing power in Java.