The The Effect of Labor Force Size, Regional Own-Source Revenue, and Average Years of Schooling on Gross Regional Domestic Product in West Java

Dinda Firdah Alfiani; M.Taufiq

doi:10.55927/ijsmr.v4i8.120

Authors

Dinda Firdah Alfiani UPN "Veteran" Jawa Timur
M.Taufiq UPN "Veteran" Jawa Timur

DOI:

https://doi.org/10.55927/ijsmr.v4i8.120

Keywords:

Gross Regional Domestic Product, Labor Force Size, Regional Own-Source Revenue, Average Years of Schooling

Abstract

West Java Province is one of the most populous provinces in Indonesia and possessing substantial economic potential. However, the growth of Gross Regional Domestic Product (GRDP) across its regencies and cities still exhibits considerable disparities. This study aims to analyze the effect of labor force size, Regional Own-Source Revenue (ROSR), and Average Years of Schooling (AYS) on the GRDP of regencies and cities in West Java Province during the 2015-2025 period. The method employed is a quantitative approach using panel data regression analysis, in which the Fixed Effect Model (FEM) was selected as the best model based on the Chow test and Hausman test. The result show that labor force size, regional own-source revenue, and AYS each have a positive and significant effect on GRDP, both partially and simultaneously. These findings indicate that labor availability, regional fiscal autonomy, and the quality of public education are strategic factors that must be continuously improved to encourage more equitable economic growth across all regencies and cities in West Java Province.

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