| Summary: | This study aimed to determine the effect of economic growth, infrastructure, and labor force to private investment. The subjects were 5 districts/municipality in Banten province with years of observation in 2007-2012. The data used in this study is private foreign direct investment and domestic investment, economic growth of Banten province, Infrastructure (proxy of government capital expenditure), and labor force. The tool of analysis used to examine the effect of economic growth, infrastructure, and labor force were panel data regression. Panel data regression estimation technique used common effect model (CEM).
Results of the study found that economic growth has a negatif and significant effect on private invesment in Banten province, Infrastructure has a positif and significant effect on private invesment in the province of Banten, the effect of labor force has a positif and no significant on private invesment in the province of Banten. Coefficient of determination shown by the R-square of 0,47 indicates that the variation of independent variables in the model can explain the variation in economic growth of 47 percent and the remaining 53 percent is explained by other variables outside the model. F probability values were statistically significant at the 1 percent level of confidence indicates simultaneous independent variables significantly affect on private investment.
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