Spatial Investment Attractiveness Analysis for Regional Economic Development of Sumatera Selatan Province in 2010-2016

Abstract

Invesment attractiveness in Sumatera Selatan Province is interesting to be observed because it will make economic growth increased. As we know that distribution of investment in Indonesia was not same in many regions. Java and Bali island are known as majority location of investment. This study will determine what is the most significantly determinants that influence of investment in Sumatera Selatan Province, and how spatial effect influence the investment in this region. As proxy of investment of the region, this study take gross fixed capital formation. This study used of panel regression model and Geographically Weighted Regression (GWR) model for analysis. The results of this study, the Human Development Index, GDRP per capita, and quantity of labour have significantly influence of investment in Sumatera Selatan Province. The elasticity of Human Development Index (HDI) influence for investment as positively at 3.699 percent. The Elasticity of Gross Domestic Regional Product (GDRP) per capita influence for investment as positively at 0.933 percent. And the elasticity quantity of labour influence for investment as positively at 0.844 percent. Spatially, every region has a model of investment that weighted of location. The results of GWR model showed that determinants of investment influenced of investment in every district of Sumatera Selatan Province with different significantly.