Analysis of economic growth influenced by industrial development, investment and labor in Southeast Sulawesi Province of Indonesia
Analysis of economic growth influenced by industrial development, investment and labor in Southeast Sulawesi Province of Indonesia

Summary/Abstract: Quality economic growth is key to improving public welfare in Indonesia. This study aims to analyze the influence of industry, investment, and labor on economic growth in Southeast Sulawesi Province of Indonesia for the period 1999-2018. The research method uses a quantitative and qualitative descriptive approach and official secondary data. The analysis is conducted using the Autoregressive Distributed Lag (ARDL) model that is able to estimate short- and long-term relationships in mixed time series data. Stationarity, cointegration, and classical assumption tests are conducted to ensure model validity, followed by short-term analysis using the Error Correction Model (ECM). The results show that industry, investment, and labor have a positive effect on economic growth. The role of industry is significant in both the short and long term, while investment and labor have a positive but insignificant effect. These findings emphasize the importance of developing the industrial sector as a priority in driving sustainable economic growth in Southeast Sulawesi. Policies that support increasing the effectiveness of investment and labor are also needed to strengthen the contribution of both factors. The results of this study provide recommendations for local governments in formulating effective development strategies to improve public welfare evenly through quality economic growth.

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