Study on the Influence of Investment on Economic Growth in Konawe Islands Regency
DOI:
https://doi.org/10.37476/presed.v3i1.120Kata Kunci:
Investment, Economic Growth, Regional DevelopmentAbstrak
This research aims to analyze the role of investment in economic growth in Konawe Islands Regency. Economic development is a continuous process to improve public welfare through the growth of Gross Regional Domestic Product (GRDP). According to data from the Central Statistics Agency (BPS), the Gross Fixed Capital Formation (GFCF) of Konawe Islands Regency for the period 2017–2021 averaged only 32.85 percent, lower than household consumption expenditure of 53.09 percent. This research uses descriptive and quantitative approaches to describe the allocation of investment activities, the rate of economic growth, the influence of investment on economic growth, and the potential utilization of natural resources in regional development. The results of the research show that the allocation of investment activities in Konawe Islands Regency tends to increase with the economic progress of the region. The region's economic growth fluctuates from year to year with the contribution of different economic sectors. Investment has proven to have a positive and significant effect on economic growth, where government capital expenditure through GFCF directly encourages an increase in real GRDP. However, the potential of the region's natural resources has not been optimally utilized, so it is necessary to increase the allocation of more directed investment to accelerate economic growth and regional independence
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