Models Spesification of Economic Growth: Evidence From Province in Sulawesi

Abstract

This study aims to determine the model of economic growth in the Province in Sulawesi. Variable predictors are determined by referring to the Keynesian income concept namely consumption, government expenditure, investment, and net exports. Data uses panel data from six provinces and 2012-2017 years and be analyzed using the Stepwise Forwards Regression. The findings showed that the economic growth of the Province in Sulawesi is affected by several variables namely consumption, government expenditure, investment, and net export. Further, the findings prove the factors of government expenditure and investment significantly affect the economic growth of the province in Sulawesi. Recommendations on economic development policies to improve economic growth control factors for government expenditure and investment should get the attention of the province in Sulawesi. Keywords: Economic Growth Factors; Stepwise Regression Method; government expenditure JEL Codes: C10; E06