The Effect Of Labor Force, Investment, Labor Absorption On Gross Regional Domestic Products Of North Sumatra Province Agriculture

Abstract

Economic growth can also be interpreted as a process of continuous change towards better conditions in a country/region. The rate of economic growth in the province of North Sumatra has increased. The increase in economic growth is indicated by the value of the Gross Regional Domestic Product (GRDP). The purpose of this study was to analyze the effect of the investment workforce, employment in the agricultural sector on the Gross Regional Domestic Product of North Sumatra Province. This study uses Time Series data with a time span of 2000-2020. Parameters are estimated using the 2 SLS (Two Stage Least Squares) method. Data processing using the Statistical Analysis System (SAS) Program version 9.2. The results of the study explain that (1) the population of North Sumatra is increased by 10 units, it will encourage an increase in the North Sumatran Workforce by 1.84 units per year. An increase in the number of employed by 10 units will increase the labor force in the agricultural sector by 4.4 units, an increase in labor absorption by 10 units has an impact on increasing the labor force by 2.9 units per year, and if the labor force in the agricultural sector last year increased by 10 units, it will increase the labor force in the sector. agriculture by 2.0 units, (2) North Sumatra Regional minimum wage is increased by 10 units it will encourage a decrease in labor absorption by 8.0 units per year. An increase in investment in the agricultural sector by 10 units will have an impact on increasing employment by 0.031 units. An increase in the number of undergraduate education by 10 units has an impact on increasing labor absorption by 19.7 units, for last year's employment in the agricultural sector by 10 units, it will result in an increase in employment in the agricultural sector by 0.3 units, (3) If interest rates are increased by 10 units will reduce investment in the agricultural sector by 9.3197 units. An increase in inflation of 10 units has an impact on an increase in investment of 2,640,178 units per year. An increase in Gross Regional Domestic Product in the agricultural sector by 10 units will have an impact on an increase in investment in the agricultural sector by 160.58 units per year, an increase in the total number of employees working over 15 years of age by 10 units, it will have an impact on an increase in investment in the agricultural sector by 35.96 units, and an increase in investment. last year by 10 units will have an impact on increasing investment by 1.5 units. (4) local taxes are increased by 10 units, it will increase the gross regional domestic product of the agricultural sector by 203.5407 units. The increase in domestic investors by 10 units has an impact on the increase in gross regional domestic product in the agricultural sector of North Sumatra by 0.19 units per year. An increase in foreign investors by 10 units will have an impact on an increase in gross regional domestic product in the agricultural sector by 0.82 units per year. will increase the Gross Regional Domestic Product of the agricultural sector by 6.0 units.