August 13, 2025

Determinants of Economic Growth in Central Java: Investment, Labor Force, Fiscal Independence, and Human Development

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Economic growth is largely influenced by labor force and fiscal autonomy, which negatively affect growth overall.
Investment showed no significant impact on economic growth in Central Java from 2021 to 2023, highlighting potential inefficiencies.
Panel data regression was applied across 35 districts, utilizing a Fixed Effect Model to analyze the effects of different determinants.
Improving investment climate and enhancing human development are crucial for fostering sustainable economic growth in the region.

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Analysis reveals negative impacts of labor force and fiscal autonomy, while HDI boosts economic growth.

Masitoh et al. (2025) studied this question.

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