The Effect of Government Consumption, Government Investment, and Government Transfer on Economic Growth in lndonesia (1979-2008)

The objective of this research is to analyze if there is a significant positive relationship between the size of government consumption, government investment, and govemment transfer and the growth rate in national output in Indonesia years 1979-2008. This research using secondary and annually data that researcher got from Central Bureau of Statistic (BPS), annually report from Indonesian Central Bank and lnternational Financial Statistic from IMF. The variable used in this research divided into two, they were dependent variable consist of economic growth and independent variable consist of government consumption, govemment investment and government transfer. For the hypothesis, I used regression model by doing F-statistic and t-statistic test try using eviews program. The result of this research show that all independent variables consist of: government consumption, government investment and government transfer have positive significantly effect on economic growth. It means that all independent variable in this research is needed to improve economic growth in Indonesia