PENGARUH BELANJA MODAL DAN INVESTASI ASING TERHADAP PERTUMBUHAN EKONOMI DI SUMATERA UTARA

Abstract

Abstract

This research aims to determinan the effect of capital expenditure and foreign investment on
economic growth in North Sumatra. This research is quantitative using time series data for 33 years.
The model used is multiple linear regression. The research results show that capital expenditure
seen from the capital expenditure sector in the APBD and foreign investment seen from the PMA
sector have a positive and significant influence on economic growth. Profits from capital
expenditure and foreign investment which have a significant effect on North Sumatra’s economic
growth are determined by an Adjusted R
2
value of 0,775840. Investment allocations need to be
managed as well as possible and effective policies are needed so that the allocation of capital
expenditure funds has a positive impact on economic growth. A strategy is needed to strengthen
foreign sector investment because if the private sector develops and economic growth will also
increase. A conducive investment climate policy is needed so that economic and business activities
in the region can run well and correctly.

Keywords: Capital Expenditure, Foreign Investment, Economic Growth.