This study analyzes the relationship between the number of tourists, tourism investment, government tourism spending, and economic growth in South Sumatra. It uses Granger causality model and simultaneous equation model to estimate the empirical model. The findings show that the number of tourists, the added value of the tourism sector, and the tourism spending of the tourism sector affect economic growth, while tourism investment does not affect the economic growth. In the second model, this study found that economic growth, tourism added value, tourism, and government tourism spending affect the number of tourists. This study implies that government policy has an important role in encouraging the tourism sector development which is indicated the contribution this sector on economic growth.

The study aims to investigate the relationship between the prices of agricultural products at the producer level with the prices of the same products at the consumer level in South Sumatera, Indonesia with a case study on the production and consumption of rice as the most important agricultural product in Indonesia. The analytical approach is linear regression modelling with Ordinary Least Squares (OLS), and the Approach of Index Market Connection model (IMC). The findings of the study indicated integration between the price of rice at the producer level and the price of rice at the consumer level. In addition, the three sample regions have IMC value less than 1, meaning that both markets have vertical integration in the short run.

This study analyzes factors affecting rice production and consumption in Indonesia from 1990-2014, the data source is from Central Bureau of Statistics (BPS). The method used is model of multiple linear regression equation with ordinary least square estimator (OLS). Our findings indicate that rice production can be affected by human capital, labor, wages, wetland, urban population, and rice prices; on the other side, technology has no effect on rice production. Other findings on the rice consumption model were influenced by human capital, per capita income, population, and consumption the previous year, and meanwhile, rice prices has no effect to rice consumption in Indonesia. It’s an important note for the government in making the right program policies such as the development of better irrigation systems, empowering the farmers by providing regular training, subsidizing material inputs to farmers, expanding farmland for farmers. Meanwhile, the government needs to create policy such as food diversification, price stabilization security, the increase of rice stock, and other agricultural policies.

The industry is the current engine of the Indonesian economy over the past three decades; the economic structure in Indonesia has the transformation from the agriculture sector to the industry sector. The objective of this study is to examine the causality between agricultural, industry, and economic growth in Indonesia. By using the vector error correction model (VECM), this research finds that in the long-term, there is directional causality from the industry added value, economic growth on the agricultural added value. Meanwhile, in the short-term, the variable of industry added value and economic growth has the two-way causality. Besides, the agricultural added value can only affect the industrial added value and economic growth in the short-term. These findings support the idea that the agricultural sector plays a vital role in the economy, such as increasing economic growth and growth in other sectors, especially the industrial sector in this case.JEL Classification: F40, L60, O13, O47

This study aims to analyze the role of investment such as total foreign direct investment and domestic direct investment, inflation, and road infrastructure to the economic growth of South Sumatera Province, Indonesia. The data used is time series data from 2007-2016, while the scope of this study is 15 districts/cities in South Sumatera Province. The data is sourced from the publication of Central Bureau of Statistics Indonesia (BPS) and the publication of the Investment Coordinating Board (BKPM) South Sumatera Province. The analysis method in this study is quantitative analysis using data panel multiple regression model. The finding of this study showed that investment, inflation, and road infrastructure development jointly has positive and significant effect on the economic growth. Meanwhile, partially indicating that investment and road infrastructure have positive and significant impact to economic growth, while inflation has positive sign but insignificant effect on economic growth of South Sumatera Province.