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Determination of the Growth Rate of Gross Domestic Regional Product (GDRP) of the Agricultural Sector in Indonesia, Period 2012 – 2021

In: Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)

Author

Listed:
  • Ayu Tri Wahyuni

    (Universitas Trisakti, Department of Economics, Faculty of Economic and Business)

  • Dini Hariyanti

    (Universitas Trisakti, Department of Economics, Faculty of Economic and Business)

Abstract

This study aims to determine the impact of land area, labor, foreign direct investment (FDI), domestic direct investment (DDI) in the agriculture sector, and farmer's term of Trade (FTT) on the growth rate of Gross Domestic Regional Product (GDRP) of the agricultural sector. The sample was taken from five agricultural sectors in the provinces with low growth rates, i.e., Riau Island, Banten, West Java, East Java, and East Kalimantan, during the 2012 to 2021 period. The forecasting method used Ordinary Least squares with panel data. The selected model is the Fixed Effect Model. The results showed that labor and Domestic Direct Investment (DDI) in the agricultural sector had a significantly positive effect on the growth rate of GDRP. While land area, Foreign Direct Investment (FDI) in the agricultural sector, and Farmer's Term of Trade (FTT) have no significant effect on the GDRP growth rate in the agricultural sector in Indonesia.

Suggested Citation

  • Ayu Tri Wahyuni & Dini Hariyanti, 2023. "Determination of the Growth Rate of Gross Domestic Regional Product (GDRP) of the Agricultural Sector in Indonesia, Period 2012 – 2021," Advances in Economics, Business and Management Research, in: Donard Games & Maruf (ed.), Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), pages 176-184, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-350-4_17
    DOI: 10.2991/978-94-6463-350-4_17
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