The Influence of Foreign Investment, Domestic Investment, Local Original Income, and General Allocation Funds on Regency/City GDP in West Nusa Tenggara Province 2019-2023

Abstract

This study aims to analyze the effect of Foreign Investment (PMA), Domestic Investment (PMDN), Local Original Income (PAD), and General Allocation Fund (DAU) on Gross Regional Domestic Product (PDRB) of regencies/cities in West Nusa Tenggara Province (NTB) during the period 2019–2023. The method used is a quantitative approach with panel data consisting of seven regencies and two cities in NTB. The analysis was carried out using a panel data regression model to determine the best model between the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). The results of the study show that partially, PMA (X1), PMDN (X2) and DAU (X4) have a positive and significant effect on PDRB (Y), while PAD (X3) does not show a significant effect. Simultaneously, the four independent variables have a significant effect on PDRB (Y) in Regencies/Cities in NTB Province in 2029-2023.