The Effect of Investment and Capital Expenditure on the Economic Growth of Lampung Province
Keywords:
Investment, Capital Expenditure, Economic Growth, Panel Data Regression, Lampung Province.
Abstract
The fluctuating economic growth in Lampung Province is thought to be influenced by changes in investment and capital expenditure levels. This study aims to determine the effect of investment and capital expenditure on economic growth in Lampung Province for the 2019–2024 period. This study uses a quantitative approach with secondary data types. The study population includes all macroeconomic data related to economic growth, investment, and government capital expenditure in Lampung Province. The study sample uses data from 15 districts/cities in Lampung Province for the 2019–2024 period. Data analysis techniques used include descriptive statistical tests, classical assumption tests, and hypothesis testing using panel data regression. The results show that the investment variable has no partial effect on economic growth, while the capital expenditure variable has a partial effect on economic growth. Simultaneously, investment and capital expenditure affect the economic growth of Lampung Province for the 2019–2024 period. Investment and capital expenditure contribute 14.3442% to the economic growth of Lampung Province, while the remaining 85.6558% is influenced by other variables outside this study. The Lampung Provincial Government is advised to formulate and optimize policies related to investment and capital expenditure to encourage sustainable economic growth and improve community welfare.
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Simangunsong, R. (2021). The Influence of Investment on Economic Growth of North Sumatra Province. Nommensen Siantar Journal of Research and Community Service , 1 (3).
Siregar, ES (2016). THE EFFECT OF INFLATION LEVELS ON REGIONAL INVESTMENT IN NORTH SUMATRA . 1 (4), 1–6.
Siregar, ES (2017). Fluctuations in Gross Regional Domestic Product (GRDP)in Padangsidimpuan City. Proceedings of the AIMI Jambi National Seminar , 27–28.
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics , 70 (1), 65. https://doi.org/10.2307/1884513
Sukirno, S. (2019). Macroeconomics: Introductory Theory (4th ed.). Jakarta: Rajawali Pers.
Winarni, E., and Ahmad, AA (2020). The Effect of Investment and Capital Expenditure on Economic Growth in Central Java Province . 20 (2), 447–450. https://doi.org/10.33087/jiubj.v20i2.946
Bado, B. (2016). Analysis of Capital Expenditure, Investment, and Labor on South Sulawesi Economic Growth. Jurnal Ilmiah Econosains , 14 (2), 34–42.
Basalama, K. (2024). Gross Regional Domestic Product in West Java Province in the Quarter of 2017-2023. Journal of Educational and Cultural Studies , 3 (1), 126–131.
Boediono, B. (2020). Monetary Economics . Yogyakarta: BPFE-YOGYAKARTA.
Bps. (2025). Gross Regional Domestic Product of Bandar Lampung City by Business Sector. In BPSKB Lampung (Ed.), Central Statistics Agency of Bandar Lampung City (Vol. 9). BPS Bandar Lampung City.
Etika, C., Rachmania, R., and Pitri, ME (2022). The Effect of Capital Expenditure and Local Original Income on Economic Growth in Lampung Province. Journal of Economic, Business and Accounting (COSTING), 6 (1), 1052–1058. https://doi.org/10.31539/costing.v6i1.4991
Fauzia, FW (2017). Factors Influencing Capital Expenditure (A Study of Regency/City Governments in East Java). Journal of Accounting Science and Research , 6 (6), 1–20.
Gampu, JL, and Romarina, A. (2024). THE EFFECT OF CAPITAL EXPENDITURE ON ECONOMIC GROWTH IN BITUNG CITY, NORTH SULAWESI PROVINCE (IPDN Jatinangor Campus). IPDN Jatinangor Campus. Retrieved from http://eprints.ipdn.ac.id/19394/
Halim, A. (2020). Regional Financial Accounting . Jakarta: Salemba Empat.
Hamza, LM, and Agustien, D. (2019). The Influence of Micro, Small, and Medium Enterprise Development on National Income in the MSME Sector in Indonesia. Journal of Development Economics , 8 (2), 127–135. https://doi.org/10.23960/jep.v8i2.45
Isnowati, S., Setiawan, MB, Basukianto, and Wardjono. (2020). Investment and Government Expenditure and Investment Economic Growth in Central Java, Indonesia . https://doi.org/10.2991/aebmr.k.210311.075
Jannah, RT, Sutrisno, S., and Permatasari, I. (2024). The Effect of Investment on Economic Growth in Indonesia . 10 (15), 772–778.
Kasmir. (2019). Financial Statement Analysis . Jakarta: PT. Raja Grafindo Persada.
Keynes, J. . (1936). The General Theory of Employment, Interest and Money . Macmillan.
Lathifa, H., and Haryanto, H. (2019). The Influence of Regional Original Income and Capital Expenditure on the Financial Performance of Regency/City Governments . 8 , 1–10.
Malau, M., Damanik, D., and Panjaitan, P. (2024). The Effect of Economic Growth on the Shift in Economic Structure in Samosir Regency. Journal of Economics , 6 (1), 114–123. https://doi.org/10.36985/gpceay38
Mankiw, N.G. (2020). Principles Of Economics (9th ed.). Boston: Cengange Learning.
Maury, GA, Kumenaung, AG, and Naukoko, AT (2023). The Effect of Capital Expenditure and Labor on Economic Growth in Southeast Minahasa Regency. Jurnal Berkala Efisiensi , 23 (4), 109–120. Retrieved from https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=0CAQQw7AJahcKEwi4xJHph5j-AhUAAAAAHQAAAAAQAg&url=https%3A%2F%2Fejournal.unsrat.ac.id%2Fv3%2Findex.php%2Fjbie%2Farticle%2Fview%2F47486&psig=AOvVaw1K31hyiFNeUy5McKYrYeLF&ust=16
Muryanto, T.D., Farida, Y., Ulinnuha, N., Khaulasari, H., and Yuliati, D. (2022). The Effect of Investment on Economic Growth in East Java. Journal of Integrative Mathematics , 18 (2), 157. https://doi.org/10.24198/jmi.v18.n2.40732.157-166
Mutiarani, A. (2025). ANALYSIS OF ECONOMIC GROWTH OF LAMPUNG PROVINCE: REVIEW OF OPEN UNEMPLOYMENT RATE, INFLATION, AND INVESTMENT PERIOD 2013-2023 MUTIARANI ASRUL Sharia Economics Study Program Faculty of Islamic Economics and Business STATE ISLAMIC INSTITUTE (IAIN)METRO 144. Jurnal Akuntansi, Bisnis dan Ekonomi Indonesia .
Nauw, ET, and Riharjo, IB (2021). The Impact of Capital Expenditure on Regional Government Financial Performance. Journal of Accounting Science and Research E-ISSN: 2460-0585 .
Permatasari, A., Rachim, A., and Sutrisno, S. (2024). The Effect of Exports and Unemployment on Economic Growth in East Kalimantan. Journal of Economic Education and Entrepreneurship Studies , 5 (1), 57–65. https://doi.org/10.26858/je3s.v5i1.1827
Qazi, M.A., and Ammad, S. (2021). Public investment efficiency and sectoral economic growth in Pakistan. Development Policy Review , 39 (3), 450–470. https://doi.org/10.1111/dpr.12493
Rahardjo, A. (2020). Theories of Economic Development and Regional Growth . Yogyakarta: Graha Ilmu.
Salvatore, D. (2021). International Economics (5th ed.; Haris Munandar, Ed.). Jakarta: Erlangga.
Samuelson, P., and Nordhaus, W.D. (2021). Microeconomics . Jakarta: Erlangga.
Sanida, N., I, W., and Muelgini, Y. (2021). Inflation determinants in ASEAN-5 Countries. International Journal of Economics and Management Studies , 8 (4), 82–86. https://doi.org/10.14445/23939125/ijems-v8i4p111
Cabinet Secretariat of the Republic of Indonesia. (2024). Dynamics of Indonesia's Economic Growth in 2023 and Projected Challenges in 2024 .
Simangunsong, R. (2021). The Influence of Investment on Economic Growth of North Sumatra Province. Nommensen Siantar Journal of Research and Community Service , 1 (3).
Siregar, ES (2016). THE EFFECT OF INFLATION LEVELS ON REGIONAL INVESTMENT IN NORTH SUMATRA . 1 (4), 1–6.
Siregar, ES (2017). Fluctuations in Gross Regional Domestic Product (GRDP)in Padangsidimpuan City. Proceedings of the AIMI Jambi National Seminar , 27–28.
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics , 70 (1), 65. https://doi.org/10.2307/1884513
Sukirno, S. (2019). Macroeconomics: Introductory Theory (4th ed.). Jakarta: Rajawali Pers.
Winarni, E., and Ahmad, AA (2020). The Effect of Investment and Capital Expenditure on Economic Growth in Central Java Province . 20 (2), 447–450. https://doi.org/10.33087/jiubj.v20i2.946
Published
2026-05-10
How to Cite
Riska Nopita sari, & Nuris Sanida. (2026). The Effect of Investment and Capital Expenditure on the Economic Growth of Lampung Province. International Journal of Economics, Business and Innovation Research, 5(03), 1786-1810. https://doi.org/10.63922/ijebir.v5i03.3564
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