THE INFLUENCE OF SOCIO-ECONOMIC FACTORS ON THE REGIONAL GROSS DOMESTIC PRODUCT IN INDONESIA

Abstract

The aim of this study is to find out the influence of socio-economic factors on the Regional Gross Domestic Product (RGDP) in thirty-four provinces. The data used in this study are secondary data for each province taken from the Central Bureau of Statistics Indonesia in 2019. This study is a quantitative research that used cross section data from thirty-four provinces in 2019. The data was analyzed by multiple regression analysis using statistical software. There are five variables used in this research. They are Inflation, Unemployment Rate, Human Development Index, and Population as the independent variable. While, Regional Gross Domestic Product as the dependent variable. The result of this study shows that Human Development Index and Population have positive and influence on the Regional Gross Domestic Product. So, the government must take active role to improving the quality of human capital (human development) through education and life expectancy in Indonesia. Also, raising public knowledge about the importance of education and health as components of human capital in order to improve the quality of human resources. Meanwhile, Inflation, Unemployment Rate have not influence on the Regional Gross Domestic Product. Furthermore, Inflation, Unemployment Rate, Human Development Index, and Population simultaneously influence Regional Gross Domestic Product.