FAKTOR-FAKTOR YANG MEMPENGARUHI PDRB PROVINSI-PROVINSI DI PULAU JAWA

High and sustainable economic growth are the crucial condition for sustainable regional economic development. Gross Domestic Regional Product can measuring the improvement of regional economic. GRDP provinces in Java during 1986-2008 has been fluctuate, affected by many factors, i.e.: foreign direct investment, domestic investment, inflation, labor force, and net export. The aim of this research is to analyze factors which influence Gross Regional Domestic Product (GRDP) Provinces in Java during period 1986-2008. Gross Regional Domestic Product (GRDP) as dependent variable in this research, while independent variables are foreign direct investment, domestic investment, inflation, labor force, and net export. The econometric method in this research use panel regression. Fixed Effect with Seemingly Unrelated Regression (SUR) or Park estimator method is used to analyze factors which influence Gross Regional Domestic Product (GRDP) Provinces in Java. The estimation which Fixed Effect SUR method shows that GRDP Provinces in Java is not affected by foreign direct investment, domestic investment, and inflation. The result in this research shows that GRDP provinces in Java during period 1986-2008 significantly affected by labor force and net export