Analysis of the Effect of Household Consumption, Domestic Investment, Regional Expenditure, and Labor on Economic Growth in Five Regencies/Cities in West Java

This study examines the impact of household consumption, domestic investment (PMDN), regional expenditure, and labor on the economic growth of the five largest regencies/cities in West Java during 2018–2023. Using secondary data from BPS, the analysis was conducted through panel data regression with the Fixed Effect Model (FEM), complemented by F and T tests. The results indicate that household consumption, PMDN, and regional expenditure have a positive and significant effect on economic growth, whereas labor does not show a significant impact. However, all four variables together have a significant influence. These findings highlight household consumption, PMDN, and regional expenditure as the main drivers of growth in West Java, while labor optimization remains important to enhance its contribution to sustainable regional development.

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Publication Details

Journal
Journal of Regional Economics and Development
Published
2025-10-15
DOI
https://doi.org/10.47134/jred.v3i1.918
Primary Topic
Economic Growth and Fiscal Policies
Type
article
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article

Analysis of the Effect of Household Consumption, Domestic Investment, Regional Expenditure, and Labor on Economic Growth in Five Regencies/Cities in West Java

Ririt Iriani Sri Setiawati, Sherliy Veri Andayani
Journal of Regional Economics and Development
Economic Growth and Fiscal Policies
article

Analysis of the Effect of Household Consumption, Domestic Investment, Regional Expenditure, and Labor on Economic Growth in Five Regencies/Cities in West Java

Ririt Iriani Sri Setiawati, Sherliy Veri Andayani
article en

Abstract

This study examines the impact of household consumption, domestic investment (PMDN), regional expenditure, and labor on the economic growth of the five largest regencies/cities in West Java during 2018–2023. Using secondary data from BPS, the analysis was conducted through panel data regression with the Fixed Effect Model (FEM), complemented by F and T tests. The results indicate that household consumption, PMDN, and regional expenditure have a positive and significant effect on economic growth, whereas labor does not show a significant impact. However, all four variables together have a significant influence. These findings highlight household consumption, PMDN, and regional expenditure as the main drivers of growth in West Java, while labor optimization remains important to enhance its contribution to sustainable regional development.

Journal of Regional Economics and DevelopmentVol. 3(1)
University of Pembangunan Nasional Veteran Jawa Timur (ID)
Openalex Percentile: Top 62%
Economic Growth and Fiscal Policies
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Analysis of the Effect of Household Consumption, Domestic Investment, Regional Expenditure, and Labor on Economic Growth in Five Regencies/Cities in West Java — Ririt Iriani Sri Setiawati, Sherliy Veri Andayani · Journal of Regional Economics and Development (2025) | TGRS Research Map | TGRS