Abstract

This study aims to determine the effect of investment and labor on the regional economic performance of provinces in Indonesia. The data used in this study is secondary data 34 Provinces in Indonesia, which in the 2010-2020 period were sourced from the BPS of the Province of Indonesia. The method used in this study is multiple linear regression analysis using panel data. The analysis shows that investment and labor have a positive and significant effect on economic performance. This means that every increase in investment and labor can improve economic performance in the Indonesian region. Simultaneously, investment and labor have an effect on economic performance, with a coefficient of determination of 87.60 % and is free from the symptoms of classical assumptions. In the Cobb-Douglas production factor analysis, investment is on a return to scale with investment and labor worth one.