THE EFFECT OF INVESTMENT, WORKER AND GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN KUTAI KARTANEGARA REGENCY, INDONESIA

Economic growth is still the main goal and an important indicator of the success of regional economic development. Kutai Kartanegara regency has fluctuation level of economic growth and the economic growth on average over the study period is moderately high (approaching double digits/average 9.43% over the study period) compare with 4 districts/major cities in East Kalimantan as well as national economic growth. The purpose of this study is to determine how much the influence of investment, worker and government expenditure on economic growth of Kutai Kartanegara regency. This study uses theory of regional economic growth Solow-swan basing on Cobb Douglas production function with consideration of its ability to show the relationship balance between production result and combination of factor production used. The data use is Gross Regional Domestic Product (PDRB) data according to constant prices and the amount of worker that is published by Central Bureau of Statistics (BPS) of Kutai Kartanegara regency, government expenditure data based on Regional Budget (APBD) of Kutai Kartanegara regency and private investment data from Regional Investment Agency (BPMD) of Kutai Kartanegara regency began in 2007-2011 (time series). Regression analysis used is OLS with the assistance of EVIEWS 7 software. The study results show that private investment variable has negative effect but not significant to local economic growth and level of error is α 5%, but worker variable has significant positive effect and government expenditure variable has positive effect but not significant.