INVESTMENT, LABOR AND THEIR EFFECTS ON ECONOMIC GROWTH OF PONOROGO REGENCY

The condition of a well-developed and rapid economy is not the best guarantee for economic growth if it is not followed by increased employment opportunities and increased investment. This can be understood because with the increase in employment opportunities will be able to accommodate new workers who each year has increased. Therefore, population growth in an economy/region must be balanced with an increase in employment opportunities so that the existing workforce can be absorbed in the world of work. Besides that, there are also conditions that must be met for development and economic growth in order to run well (experiencing an increase), namely the existence of investment activities. It is expected that an increase in investment activities, then economic activities also increase, so that it will increase the economic growth of a region. The investment that takes place in Ponorogo Regency will certainly absorb a large number of workers. With these conditions will create economic activities in various sectors that are increasingly developing, and this will have an impact on increasing development and economic growth in Ponorogo Regency. From the results of the significance test in the level of error of 5%, it can be seen that the investment does not affect the growth of the economy of Ponorogo Regency. However, if viewed from the regression equation, it turns out there is an influence of investment on economic growth, although the effect is relatively small. So that high investment will also be able to increase economic growth in Ponorogo Regency. While labor has an influence on the economic growth of Ponorogo Regency at a significance level of 5%. And from the regression equation, labor has a relatively high influence on economic growth. And from the simultaneous test, it is proven that investment and labor together influence the economic growth of Ponorogo Regency.


INTRODUCTION
In order to achieve the objectives of the national development that has The condition of a welldeveloped and rapid economy is not the best guarantee if there is no increase in employment opportunities to accommodate new workers who enter the workforce every year.Thus, it can be said that there is a strong relationship between national and regional economic growth with increased employment opportunities.
Besides that, there are also conditions that must be met for economic development in order to be able to run well, namely the existence of investment activities.The main purpose of the investment is to obtain enormous benefits in the future, namely if investment activities increase, the economic activities also increase.While the problem in this study is, how is the effect of direct investment and labor on Ponorogo Regency economic growth?

Investment in
The purpose of this study was to determine the effect of direct investment and labor on economic growth in Ponorogo Regency.

Definition of Investment
Investment is a positive addition In carrying out development, a theoretical basis is needed that is able to explain the correlation between the observed facts so that it can be used as an orientation framework for analysis and make predictions of the new symptoms that are expected to occur.

Regional Economic Growth Theory
According to Tarigan, the theory that talks about regional growth start from the theories quoted from macro/economic development economics by changing regional boundaries and adjusting them to their operational environment, followed by originally developed theories in regional economies.If in macroeconomic and economic development, the term export or import is a trade with foreign countries, so in regional economies, it means trade with other regions (including foreign trade).
In relation to labor, the most widely used theory is the theory of the export base.In this theory, society can be expressed as a socio-economic system.
As a system, the whole community trades with other communities outside its borders.Determinants (determinants) of economic growth are directly linked to the demand for goods from other regions outside the boundaries of regional economic communities.The growth theory quoted from macroeconomics is applicable to the national economy which in itself also applies to the region concerned.In carrying out development, a theoretical basis is needed that is able to explain the correlation between the observed facts so that it can be used as an orientation framework for analysis and make predictions of the new symptoms that are expected to occur.

Hypothesis
Based on theoretical thinking and empirical studies that have been carried out in relation to research in this field, the hypothesis proposed by the author is: "Direct Investment and Labor

Influence on Economic Growth in
Ponorogo Regency".

Research Location
The location of this study was

Data source
The document as a source of data is based on secondary data obtained from BPS Ponorogo Regency various publications.
2. If r = -1, then between the two variables has a "perfect" negative relationship.
3. If r = 1, then between the two variables has a positive relationship "perfect" 4. If r = 0, then between the two variables has no relationship.

Hypothesis Testing Results
To find out the effect of investment and labor on the Economic Growth of Ponorogo Regency, a quantitative approach is used that uses multiple linear regression equations.To see the multiple linear regression equation from this study can be seen in the following table:

Discussion of Results
From the results of processing the data, it can be seen from the constant value that there is an attachment between investment and the number of Indonesian workers from Ponorogo Regency to Economic Growth.
in other fields, both social, behavioral and institutional.The main objective of economic development is an effort to create the highest growth, and also strive to reduce the level the same period to the next period, namely by increasing the production of goods and services caused by production factors that always experience an increase in the number and quality.According to Sukirno (2004) in the macro analysis, the level of economic growth achieved by a country is measured by the development of real national income achieved by a country/region.
Ponorogo Regency certainly absorbs a large number of workers.With these conditions will create economic growth in various sectors, and this will have an impact on increasing development and economic growth in Ponorogo Regency.Based on the background that has been described, the authors are interested in conducting research on the Effect of Direct Investment and Labor on Economic Growth in Ponorogo.Regency.
in the economy that cause goods and services produced in society to increase and the prosperity of the community increases.The problem of economic growth can be seen as a macroeconomic problem in the long run.The development of the ability to produce goods and services as a result of the increase in production factors, in general, is not always followed by the increase in the production of goods and services which are of equal magnitude.Economic growth is generally defined as an increase in real GDP per capita.Gross Domestic Product (GDP) is the market value of the total output of a country, which is the market value of all finished goods and final services produced during a certain period of time by production factors located within a country.
conducted in Ponorogo Regency.The selection of this research area was conducted purposively, namely deliberate selection with the intention of finding an area that was relevant to the research objectives.Determination of the location of this research is carried out by considering the suitability of the location with the theoretical framework, considering operational techniques, and the possibility to approach the social structure.
H0: b1 = b2 = 0; There is no influence between investment and workforce on Ponorogo Regency GRDP.Ha: b1 ≠ b2 ≠ 0; There is an influence between investment and labor towards Ponorogo Regency GRDP.The conditions for accepting or rejecting the hypothesis are as follows: a) If Fhit> Ftable, then Ho is rejected and accepted means the independent variable as a whole has an effect on the dependent variable b) If Fhit <Ftable, then Ho, rejected and accepted means that the independent variable as a whole does not affect the dependent variable.While to see the closeness of the relationship between investment, the number of workers and the Economic Growth of Ponorogo Regency can be seen from the value of the correlation coefficient (r).The provisions of the correlation test are as follows: In accordance with the purpose of this study, quantitative methods are used that use multiple linear regression equations, with the following equation: Y = a + b1 X1 + b2 X2 + e; To avoid any bias in the study, the equation changes to: Ln Y = a + b1 LnX1 + b2 LnX2 + e regression and testing hypotheses, first test the quality of the data (testing of the violation of classic assumptions).The results of a good hypothesis testing are tests that do not violate the three classic assumptions underlying the linear regression model, the three assumptions are as follows (Gujarati, 1995):AutocorrelationThe autocorrelation test aims to determine whether there is a correlation between members of a series of observation data in time series.To detect the occurrence of autocorrelation in this study, the DW test was used by looking at the DW test correlation coefficient(Algifari, 1997).In this study to see whether there is autocorrelation if the Durbin -Watson value is at 1.6413 -23578, it means that there is no autocorrelation.The autocorrelation test results can be seen in the following table: As stated byKusnadi (1998)  that economic growth is influenced by several factors, namely: investment, exports, and labor.These three variables have a positive effect on economic growth.Likewise, the results of research conducted by Supranto (2004), which states that economic growth is influenced by foreign investment, the total value of exports, total employment, domestic savings, and foreign debt.This proves that there is significant influence between investment and labor on the Economic Growth of Ponorogo Regency.It can be seen if the two variables (investment and labor) are worth 0, meaning that there are no activities in both of these variables, then Economic Growth will judge a decrease of 12.089%.This can be understood that investment and labor are very influential on the Economic Growth of Ponorogo Regency.From the results of data processing obtained by the regression variable investment coefficient of -0.085, which means that if there is an increase in investment variables in Ponorogo Regency experiencing an increase of 1% it will cause a decrease in Ponorogo Regency Economic Growth variable by 0.085% assuming other variables are constant.From the results of the significance test, the changes that occur in the investment variable do not have a significant effect on the variable changes Economic growth in Ponorogo Regency at a significance level of 0.05 or 5%.However, if using a significance level of 0.20 (20%) indicates there is the influence.This shows that the effect of the investment on economic growth is relatively small.So that it can be said that the effect of the investment on economic growth in Ponorogo Regency is considered to be less significant.Besides that, there is no significant investment in economic growth, this shows that investment in Ponorogo Regency whose investment has been realized has not been able to optimally encourage economic growth.Investment in Ponorogo Regency is only focused on a number of sectors and has not been evenly distributed in all sectors so that economic growth has increased but not significantly.Investment is a key driver of the economy, both from PMDN and PMA, certainly needed to achieve an economic growth target where economic growth is an important element in a development process.Besides that, the increase in investment is not supported by natural resources that are not optimal, such as human resources that do not have good skills, damaged or perforated infrastructure, investors will think they will increase production costs, of course before investors invest in their regions already have their own calculations in order for a return of investment to occur.While the results of data processing obtained by the regression variable labor coefficient of 1,150 and a positive sign which means that if there is an increase in the variable labor in Ponorogo Regency of one (1) %, it will cause an increase in Ponorogo Regency Economic Growth variable by 1,150 percent assuming other variables are constant.This shows that the development that occurs in the variable workforce in Ponorogo Regency will also influence the magnitude of the development of the Ponorogo Regency Economic Growth.

Table 1 :
Amount of Investment, Labor and GRDP of Ponorogo Regency Ponorogo Regency is bordered by Madiun Regency, Magetan Regency, and Nganjuk Regency in the north, Pacitan Regency in the south, Pacitan Regency and Wonogiri Regency in Central Java Province in the west, and Tulungagung Regency and Trengalek Regency.

Table 5 :
Multiple Linear Regression