JEFMS Journal

ABSTRACT:

The island of Java is the area with the largest processing industry development in Indonesia. Supported by a large number of industries and the number of workers, industrialization in Java is growing. In the face of an increasingly rapid competition pattern, every industry player must always innovate by increasing the company's capabilities, in this case, it is associated with capital capacity through investments, both Domestic Investment (PMDN) and Foreign Investment (PMA) as well as the capacity of the workforce to generate income. Output in the manufacturing sector. The theory used in this study is a theory related to the factors of production, namely the Cobb-Douglas production function. This study uses quantitative methods using secondary data. The panel data regression technique was used in analyzing the data. The purpose of this study was to determine the effect of domestic investment, foreign investment, and labor on the output of the processing industry using quantitative methods using data from provinces on Java Island from 2015-2020.

KEYWORDS:

Processing Industry, Investment, Labor, Panel Data Regression Rating

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