Purpose: The impact of democracy on economic growth is an interesting study of economic institutions and there is still debate about the impact on economic growth. One side of the research finds that democracy has a significant and positive impact on economic growth, but the other side states that the improvement of the country's democracy causes economic growth to decline. This study aims to examine the impact of the quality of democracy on economic growth at the provincial level in Indonesia. Research methodology: The data used in this study use panel data using the Eviews 9.0 analysis tool, so that the best method named the Random Effect Model is obtained. Result: The results show that democracy in Indonesia has a significant impact on economic growth and there is a positive trend in the long run. Other variables used are labor and foreign investment, which statistically, if these variables occur, can increase economic growth in Indonesia and increase employment and data on foreign investment play a role in driving economic growth. Economic growth in Indonesia is already in good condition and the economic growth that occurs is convergence growth which shows that some provinces that are poor/underdeveloped can catch up with developed provinces. Limitations: This study uses fairly short time-series data, so that the addition of a longer time-series will of course give better results. Contribution: Improvements in democracy in Indonesia should also strengthen democratic norms that apply in society, such as reducing corrupt behaviors, especially political corruption and money politics to get public office because if this behavior cannot be corrected, then democracy will have little impact on the economy.
This study aims to analyze the independence and ability of regencies / cities and their effects on economic growth in Lampung Province. The method used is panel data analysis. The results showed that Bandar Lampung City was in a consultative relationship pattern, while 13 districts and 1 other city were in an instructive relationship pattern. Whereas based on the analysis of regional financial capability, Bandar Lampung City has a good relationship pattern category, the Metro City category of sufficient relationship pattern and South Lampung Regency and East Lampung Regency with less relationship pattern criteria. Whereas the other 11 districts are still in very poor category. Regression results show that the ratio of regional financial capacity has a negative and significant effect on the level of ? (5%) on economic growth, while regional financial independence has no effect on economic growth.
abroad and domestically. Incoming investment is affected by a country's daytime strength. Widespread investment encourages more competition and corrupt practices as many investors want to reduce the bureaucracy they face. However, in the investment market a high level of corruption also makes a country's economy unattractive. This study aims to analyze the effect of a country's competitiveness on the entry of Foreign Direct Investment in ASEAN. The variables used in this study are foreign investment, competitiveness, Corruption Perception Index, and political stability. The analytical method used is the Random Effect Model. This shows that state power is able to encourage direct foreign investment in a positive direction, as well as the Corruption Perception Index where the handling of the level of corruption will encourage the entry of Foreign Direct Investment. Political stability in this study does not have a significant effect, meaning that political shocks do not interfere with the entry of Foreign Direct Investment in ASEAN in the period 2010 to 2020.
The decline in economic growth, which is offset by the increasing number of people and the lack of availability of jobs, has caused more people to be affected and involved in non-crime activities based on the crime rate (CR). This study aims to analyze the effect of crime rates on provincial economic growth in Indonesia in 2011-2020. The variables used are economic growth, crime rates, investment, labor, and initial growth. The method used is the Fixed Effect Model. The results show that the higher the crime rate impacts the decline in economic growth, further increase in investment and labor will encourage economic growth. In contrast, the initial growth shows that the economy of poor provinces grows slower than rich provinces.
This study aims to analyze the impact of the global crisis that occurred in 2008 on economic growth, the trigger for the crisis, namely an increase in credit accumulation in a large amount and in a short time in the United States (US), this increase led to an increase in bad credit so that it was quite large in the world economy. Economic growth, the global crisis, investment, exports, and labor are variables that will be obtained from the Central Statistics Agency, the Investment Coordinating Board, and others. The result of the unit root test and cointegration shows that the Error Correction Model is the chosen model. The results showed that the global crisis had a significant and negative impact on economic growth in Indonesia, while exports, labor, and investment had a significant and positive impact. Therefore, the government must maintain the balance of the economy to prevent a crisis, as well as the need to encourage investment, exports, and human resources to encourage increased economic growth.
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