Analisis Spillover Effect Investasi terhadap Pertumbuhan Ekonomi Pulau Jawa

Oleh :
Ratna Tunjungsari - T401908021 - Fak. Ekonomi dan Bisnis

One factor believed to play an important role in driving economic growth is investment. Investment from both domestic and foreign sources can increase capital stock, improve productivity, create jobs and ultimately drive economic growth.  This study aims to analyse the direct effect of investment on the economy, analyse the spillover effect of investment on the Gross Regional Domestic Product (GRDP) (indirect effect), and analyse the spillover pattern using a distribution map to review policies. This study uses the variables of investment, GRDP, migration, employment opportunities, Human Development Index (HDI), and poverty. This study covers all districts and cities on the island of Java from 2015 to 2024. The results show that investment has a positive and significant effect on the GRDP of districts or cities on the island of Java. The findings of this study  indicate a pattern of spatial dependence, whereby certain districts or cities receive greater spillover effects. This confirms that economic growth on the island of Java is not entirely independent at the local level, but is influenced by the performance of surrounding regions.