DETERMINAN PERTUMBUHAN EKONOMI DI PULAU SUMATERA

Economic growth is an indicator that can measure people's welfare as well as a long-term economic problem in a country. This research is a quantitative study with panel data. This research is a quantitative study with panel data. The purpose of this study is to analyze the determinants of economic growth on the island of Sumatra from 2010-2019. The dependent variables used are inflation, domestic direct investment, foreign investment and the democracy index on the island of Sumatra. The analytical method used is linear regression panel data with a fixed effect model, The data used are secondary data taken from the Investment Coordinating Board (PMDN), the Central Bureau of Statistics (BPS) and Bank Indonesia (BI). The results of the research obtained by performing panel data regression using Eviews 9 states that simultaneously or together the inflation variable, Domestic investment, foreign investment, the democracy index have a simultaneous effect on the dependent variable or GRDP variable in ten provinces of Sumatra island from 2010 to 2019. Partially the inflation variable has a negative and significant effect on economic growth. While the domestic investment variable and the democracy index variable have a positive and significant effect, while foreign investment had a positive but insignificant effect on economic growth in ten provinces on the island of Sumatra in 2010-2019