An Analysis on Factors Affecting Gross Regional Domestic Product of Riau Province in 2011-2015

Abstract

This study aims to analyze the factors which influence the Gross Regional Domestic Product (GRDP) in Riau Province in the period of 2011-2015. Those factors are government spending, infrastructure (length of road), domestic investment, foreign direct investment, export, and labor. The research makes use of secondary data from BPS. The data analysis uses the panel data which focuses on random effect analysis. The sample data is the data from total five districts (Indragiri Hilir, Indragiri Hulu, Bengkalis, Siak , and Pelalawan) and two cities (Pekanbaru and Dumai) in the province of Riau in the period of 2011-2015. The result of the analysis shows that the GRDP in Riau province has been significantly influenced by government spending, infrastucture, export and labor. Government spending and labor give positive impact toward GRDP, while infrastructure and export gives negative impact toward GRDP in Riau province. Meanwhile, domestic investment and foreign direct investment do not significantly affect the GRDP in Riau province.