The Factors Influencing Economic Growth of South Sulawesi Province, Indonesia

Investment, Labor, Government spending, Exports, Inequality

Authors

  • Akhmad Muhammadiyah University Makassar, Indonesia
  • Zainal Abidin School of Economics STIE-YPUP Makassar, Indonesia
  • Manda H.M School of Economics STIE-YPUP Makassar, Indonesia
  • Amir Muhammadiyah University Makassar, Indonesia
Vol. 13 No. 11 (2025)
Economics and Management
November 19, 2025

Downloads

This study aims to analyze the factors that influence economic growth in South Sulawesi Province. Economic growth is one of the main indicators of successful regional development, which is influenced by various macroeconomic factors. The independent variables used in this study include investment, labor, government spending, inter-regional exports, and inequality, while the dependent variable is economic growth measured based on Gross Regional Domestic Product (GRDP) at constant prices. The data used is secondary data obtained from publications by the South Sulawesi Provincial Statistics Agency (BPS) from 1997 to 2024. The analysis method used is multiple linear regression to determine the effect of each variable on economic growth. The results show that investment, labor absorption, and inter-regional exports have a positive and significant effect on economic growth, while government spending has a positive but insignificant effect. This indicates that increasing investment, labor absorption, and exports play an important role in driving economic growth in South Sulawesi Province. Meanwhile, inequality has a negative and significant effect on economic growth. Therefore, equitable development is an important aspect to support inclusive economic growth in South Sulawesi Province. This study is expected to contribute to the formulation of regional economic policies oriented towards sustainable development in South Sulawesi Province.