Analysis of economic growth influenced by industrial development, investment and labor in Southeast Sulawesi Province of Indonesia

Economic Annals-XXI: Volume 214, Issue (3-4), Pages: 89-94

Citation information
Nur, Muh., Yunus, A., Yuana, I., Rahmah, W., & Muthalib, D. A. (2025). Analysis of economic growth influenced by industrial development, investment and labor in Southeast Sulawesi Province of Indonesia. Economic Annals-XXI, 214(3-4), 89-94. doi: https://doi.org/10.21003/ea.V214-13

Muh. Nur
PhD (Economics),
Master of Management Study Program,
Institute of Economic Science
(Sekolah Tinggi Ilmu Ekonomi Enam-Enam Kendari)
66 Kendari-Sulawesi Rd., Kendari City,
South East Sulawesi, 93111, Indonesia
muh.nur363@gmail.com
ORCID ID: https://orcid.org/0000-0002-6742-1331
Corresponding author

Asraf Yunus
PhD (Management),
Bachelor of Management Study Program,
Institute of Economic Science
(Sekolah Tinggi Ilmu Ekonomi Enam-Enam Kendari)
66 Kendari-Sulawesi Rd., Kendari City,
South East Sulawesi, 93111, Indonesia
asrafyunus23@gmail.com
ORCID ID: https://orcid.org/0009-0000-8977-3760

Indira Yuana
PhD (Management),
Bachelor of Management Study Program,
Institute of Economic Science
(Sekolah Tinggi Ilmu Ekonomi Enam-Enam Kendari)
66 Kendari-Sulawesi Rd., Kendari City,
South East Sulawesi, 93111, Indonesia
indirayuana09@gmail.com
ORCID ID: https://orcid.org/0009-0002-7060-3205

Wahyuni Rahmah
PhD (Management),
Bachelor of Management Study Program,
Institute of Economic Science
(Sekolah Tinggi Ilmu Ekonomi Enam-Enam Kendari)
66 Kendari-Sulawesi Rd., Kendari City, South East Sulawesi, 93111, Indonesia
Wahyuni.rahmah90@gmail.com
ORCID ID: https://orcid.org/0009-0006-2267-2934

Dzulfikri Azis Muthalib
PhD (Management),
Department of Management,
Faculty of Economics and Business,
Halu Oleo University
Kampus Hijau Bumi Tridharma, Anduonohu, Kec. Kambu,
Kota Kendari, Sulawesi Tenggara, 93232, Indonesia
fikriazis12@uho.ac.id
ORCID ID: https://orcid.org/0000-0001-7095-8423

Analysis of economic growth influenced by industrial development, investment and labor in Southeast Sulawesi Province of Indonesia

Abstract. Quality economic growth is key to improving public welfare in Indonesia. This study aims to analyze the influence of industry, investment, and labor on economic growth in Southeast Sulawesi Province of Indonesia for the period 1999-2018. The research method uses a quantitative and qualitative descriptive approach and official secondary data. The analysis is conducted using the Autoregressive Distributed Lag (ARDL) model that is able to estimate short- and long-term relationships in mixed time series data. Stationarity, cointegration, and classical assumption tests are conducted to ensure model validity, followed by short-term analysis using the Error Correction Model (ECM). The results show that industry, investment, and labor have a positive effect on economic growth. The role of industry is significant in both the short and long term, while investment and labor have a positive but insignificant effect. These findings emphasize the importance of developing the industrial sector as a priority in driving sustainable economic growth in Southeast Sulawesi. Policies that support increasing the effectiveness of investment and labor are also needed to strengthen the contribution of both factors. The results of this study provide recommendations for local governments in formulating effective development strategies to improve public welfare evenly through quality economic growth.

Keywords: Economic Growth; Industry; Investment; Labor; Southeast Sulawesi

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V214-13

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Received 27.01.2025
Received in revised form 16.02.2025
Accepted 21.02.2025
Available online 29.04.2025