Abstract

This research aims to know the Effects of Industrial Agglomeration, Labor Absorption and Wage Rates on Economic Growth on Sulawesi Island. Data used in research are secondary data sourced from the Central Statistics Agency. The method used in this study uses the analysis of the Linear Multiple Data Panel Regression, the 2010-2019 period on Sulawesi Island. The results of the analysis show that the influence of industrial agglomeration has a positive and significant effect on economic growth in Sulawesi. That is, any increase in industrial agglomeration of 1% will increase economic growth by 0.214029 in Sulawesi. The effect of labor uptake has a negative and insignificant effect on economic growth in Sulawesi. That is, an increase in labor uptake by 1% will reduce economic growth, but this decline cannot be explained in the year. And the effect of wage rates has a positive and significant effect on economic growth in Sulawesi. That is, any 1% increase in wages will increase economic growth by 0.177377 in Sulawesi.