Abstract
This research aims to analyze the determinants of economic growth in East Nusa Tenggara Province, consisting of life expectancy, mean years of schooling, expected years of schooling, purchasing power, labor force participation rate, government investment, and number of tourists on economic growth, and to analyze the dominant variable influencing economic growth. The type of data used in this research is secondary data in the form of panel data with cross sections of 20 regencies/cities and time series for six years (2011-2016). The analytical tool used is panel data regression with fixed effect model. The results show that life expectancy, mean years of schooling, purchasing power, and government investment have a significant effect on economic growth. Whereas expected years of schooling, labor force participation rate, and number of tourists have no significant effect on economic growth. Life expectancy, mean years of schooling, purchasing power, labor force participation rate, government investment, and number of tourists simultaneously affect economic growth.Keywords: Economic Growth, Human Development Index, Labor Force Participation Rate, Government Investment, Number of Tourists.
Highlights
High economic growth is the main target in development because economic growth is a central theme in the Indonesian economy
This study addresses the following research questions: 1. How is the influence of life expectancy, mean years of schooling, expected years of schooling, purchasing power, Labor Force Participation Rate, government investment, and number of tourists on economic growth in East Nusa Tenggara Province? 2
Expected years of schooling (EYS), labor force participation rate (LFPR), and number of tourists have no significant effect on economic growth in East Nusa Tenggara Province
Summary
High economic growth is the main target in development because economic growth is a central theme in the Indonesian economy. The ups and downs of a country's development can be seen from economic growth because it is closely related to the increase of goods and services produced in the community. The larger the number of goods and services produced, the higher the welfare of society (Soebagyo, 2007). Economic growth in East Nusa Tenggara, in general, is not much different from the national economic growth. East Nusa Tenggara with the diverse natural resources has the potential to improve the region's economy. The economic performance of East Nusa Tenggara during 2011-2014 tended to decline with an average growth rate of 5.4 percent, lower than the national economic growth rate in the same period of 5.9 percent as shown at Figure 1
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