INVESTMENT ON THE COMMUNITY INCOME AND THE ECONOMIC GROWTH IN CENTRAL JAVA
ABSTRACT: This article
attempts to analyze the impact of investment on the community income and the economic
growth in Central Java using the social accounting matrix (SAM) framework
concerning people’s income and economic growth. The data were taken from
Central Bureau of Statistics (BPS). Thus, it concerns production factor block,
institutional block, and production sector block. It shows that investment
influences the people income and economical growth. People’s income that is
most affected is farming business income while that of being less affected is
farming worker. The distribution of people’s income is not spread evenly among
the group. Furthermore, investment production block has positive impact on the
biggest economic growth, especially on manufacturing industry sectors, except
food, electricity, gasses, and drinking water. People’s income condition and
economic growth which are influenced by investment proved to have no
difference. As such, several factors that supportinvestment atmosphere policy:
bureaucracy and licensing, infrastructure, and investment protection from
illegal tolls must be given more serious attention. Beside, investment is
expected to grow effectively and efficiently. Next, the implication of
investment policy as the main generator of economic growth trough production
sector has biggest positive impact,especially on financial institution and
trade sector, while investment has less impact on industrial and agricultural
sectors especially on food crop and food industry.
Author: P. Eko Prasetyo Adnan,
Suryo Darmono
Kode Jurnal: jpakuntansigg100020
