THE INFLUENCE OF THREE SECTOR ECONOMIC VARIABLES ON ECONOMIC GROWTH IN INDONESIA
Muhayratu Farisha (a*), Puti Andiny (a), Safuridar (a)

Department of Development Economics, Faculty of Economics, Universitas Samudra
Jl. Prof. Dr. Syarief Thayeb, Meurandeh, Langsa Lama, Langsa, Aceh 24416
*rarisharatu[at]gmail.com

Abstract

This research aims to analyze the factors influencing Indonesia^s economic growth in a three-sector economy. The factors used as independent variables are household consumption, investment, and government expenditure, which are analyzed to observe their effects on economic growth as the dependent variable. In this analysis, a multiple linear regression model is employed using time series data sourced from the Indonesian Central Bureau of Statistics (BPS) from 2009 to 2023. The results show that household consumption has a positive and significant effect on economic growth. Investment also has a positive and significant effect on economic growth, while government expenditure has a negative and insignificant effect on economic growth.

Keywords: Household Consumption, Investment, Government Expenditure, Economic Growth

Topic: Social Sciences and Humanities