Equity: Jurnal Ekonomi
Vol 14 No 1 (2026): Equity : Jurnal Ekonomi

Sectoral Investment, Economic Growth, and Labor Absorption in Resource-Based Regions: Empirical Evidence from Kutai Kartanegara, Indonesia

Yurita Eriani (DPMPTSP Kabupaten Kutai Kartanegara & Magister Ilmu Ekonomi, Universitas Mulawarman)
Juliansyah Roy (Faculty of Economics and Business, Universitas Mulawarman)
Diana Lestari (Faculty of Economics and Business, Universitas Mulawarman)



Article Info

Publish Date
15 Jun 2026

Abstract

This study aims to analyze the effect of sectoral investment on economic growth and labor absorption in Kutai Kartanegara Regency using a mediation framework. The study employs an explanatory quantitative approach using time-series data for 2016–2025 and applies path analysis to examine direct and indirect relationships among the variables. Gross Regional Domestic Product (GRDP) data were obtained from Badan Pusat Statistik (Statistics Indonesia) based on the February 27, 2026 release of the 2010 Series publication, Gross Regional Domestic Product at Constant Prices by Industrial Origin (Billion Rupiah), in which the 2023 data are preliminary and the 2024–2025 data are very preliminary. The results show that primary sector investment has a positive and significant effect on economic growth (β = 0.714; p = 0.013). Primary sector investment (β = 0.455; p = 0.033) and tertiary sector investment (β = 0.507; p = 0.040) also have positive and significant effects on labor absorption, whereas secondary sector investment has no significant effect. Economic growth does not significantly affect labor absorption (β = -0.610; p = 0.212) and does not mediate the relationship between sectoral investment and labor absorption based on the Sobel test (p = 0.185). These findings indicate jobless growth, where rising regional output is not fully accompanied by proportional employment opportunities. Therefore, regional investment policies should prioritize more labor-intensive sectors to promote inclusive and sustainable economic growth. This study contributes to the literature on jobless growth in resource-based regions

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Journal Info

Abbrev

equity

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Equity: Jurnal Ekonomi [p-ISSN 1978-3795, e-ISSN 2721-6721] is double-blind peer-reviewed, open access, a scientific journal that contains the results of theoretical research and studies on economic and development issues. The issue is related to: literature review, modeling results in economics, ...