THE EFFECT OF HOUSEHOLD CONSUMPTION, INVESTMENT AND
GOVERNMENT EXPENDITURE TO GROSS REGIONAL DOMESTIC PRODUCT
GRDP) IN BALI PROVINCE
Ni Nyoman Yuliarmi
Jurusan Ilmu Ekonomi
Fakultas Ekonomi, Universitas Udayana, Denpasar
The target of the development, especially field of economic is to create economical growth. The economic grows if the economic grows continuously without even one year decreases. The performance of an area can be seen from investment capability to create the growth of Gross Regional Domestic Product (GRDP). GRDP and Regional Revenue constitute an indicator used to know the economic condition of an area. GRDP is an added values produced by all business unit in an area in certain period of time. GRDP calculation, seen from expense point of view, distinguishes expenditures into four components, namely, household consumption, government expenditures, capital formation in private sector (investment) and net export, therefore change of GRDP will be affected very much by those components in addition to other factors. The growth of GRDP from 1994 – 2005 was very fluctuated, however the growth was still positive. From the growth point of view, household expenditure, investment, as well as government expenditure also fluctuated but remained on positive growth condition. The researched is aimed to know the effect, either simultaneously as well as partially, to household expenditure, investment and government expenditure to GRDP of Bali Province in the year 1994 – 2005. The technique of analysis applied double linear regression. To know simultaneous and partial effect, it is applied F - test and T-test.
The result of research concludes that: 1) Household consumption, investment and government expenditures simultaneously have significant effect to GRDP of Bali Province from 1994 – 2005. 2) Household consumption partially have significant effect to GRDP of Bali Province from 1994 – 2005, while investment and government expenditure have no significant effect to GRDP of Bali Province from 1994 – 2005. Based on the above conclusion, it is recommended that the development of investment needs improving by remedying security and convenience condition as well as supporting better law enforcement, so that investors have not feeling of worry to invest their capital. More attention is given work opportunity to as well as providing work fields, educating and providing skill for workers so that they are capable to compete in gaining jobs.
Key words: household consumption, investment, government expenditure
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