Relevance of Investment, Economic Growth and Labor Force in Indonesia (An Empirical Analysis)

DOI

10.2991/978-94-6463-758-8_26How to use a DOI?

Keywords

Domestic investment; foreign investment; Economic Growth; Labor Force; Indonesia

Abstract

The role of investment critical driving economic growth, which in turn creates jobs for the labor force. The interconnectedness of investment, economic growth and labor force forms the basis of economic prosperity, as investment drives productivity and innovation, economic growth creates wealth, and a healthy labor force ensures the sustainability of development. This study aims to look at the effect of domestic investment and foreign investment in the primary, secondary, and tertiary sectors on economic growth and the labor force in Indonesia. The research period is thirteen years, from 2011 to 2023. The model used multiple regression equations. The results showed that domestic investment in the primary and secondary sectors had an influence on economic growth and for foreign investment in all three sectors had a significant effect on economic growth even though the secondary and tertiary sectors had a negative impact. Furthermore, domestic investment in the secondary sector has an influence on the labor force and foreign investment in the secondary and tertiary sectors is significant to the labor force. The increase in the Indonesian economy is strongly influenced by foreign investment when compared to domestic investment, and therefore the country needs to take some strategic steps to encourage the growth of domestic investment while maintaining healthy foreign investment flows.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Wiwin Anggriani Salawali
AU  - Nursini Nursini
AU  - Sri Undai Nurbayani
AU  - Retno Fitrianti
PY  - 2025
DA  - 2025/07/30
TI  - Relevance of Investment, Economic Growth and Labor Force in Indonesia (An Empirical Analysis)
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 306
EP  - 318
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_26
DO  - 10.2991/978-94-6463-758-8_26
ID  - Salawali2025
ER  -