Danadyaksa: Post Modern Economy Journal
Vol. 4 No. 2 (2026): Post Modern Economy Journal

The Effects of Household Consumption, Open Unemployment Rate and Domestic Investment on Regional Gross Domestic Product in 32 Provinces Of Indonesia

M. Reizky Satria Latuconsina (Universitas Sriwijaya, Palembang, Indonesia)
Sela Indra Lestari (Universitas Sriwijaya, Palembang, Indonesia)
Siti Rohima (Universitas Sriwijaya, Palembang, Indonesia)
Anna Yulianita (Universitas Sriwijaya, Palembang, Indonesia)
Muhammad Subardin (Universitas Sriwijaya, Palembang, Indonesia)



Article Info

Publish Date
06 Nov 2026

Abstract

This study examines the effects of household consumption, open unemployment rate, and domestic investment on Regional Gross Domestic Product (GRDP) in 32 provinces of Indonesia during 2014–2025. Using secondary panel data comprising 384 observations, the study applies panel data regression with the Common Effect Model, Fixed Effect Model, and Random Effect Model. Based on the Chow, Hausman, and Lagrange Multiplier tests, the Fixed Effect Model is selected as the appropriate model. The results show that household consumption has a positive and significant effect on GRDP, while the open unemployment rate has a negative and significant effect. Domestic investment has a positive and significant effect on GRDP. Simultaneously, all three variables significantly affect GRDP. These findings highlight the importance of strengthening household consumption and local production, reducing unemployment through productive employment, and improving the quality and productivity of domestic investment to support regional economic development.

Copyrights © 2026






Journal Info

Abbrev

danadyaksa

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Danadyaksa: Post Modern Economy Journal is an open-access, peer-reviewed journal whose objective is to publish original research papers related to the economy, Sharia economy, and business issues. This journal is also dedicated to disseminating the published articles freely for international ...