The Influential of Private Investment, Public Investment on Economic Growth and Labor Absorption and Public Welfare of District/City in East Java Province

Abstract

This study aims to determine the effect of private investment, public investment on economic growth and employment as well as the livelihoods of the urban districts in East Java province. Studies conducted on the district or a city located in East Java Province. Furthermore, the whole district is located in the city of East Java Province. Exogenous constructs (X) is : Private investment variables and public investment. Among the variables (Y) is : Economic growth and labor absorption. Endogenous constructs include the public welfare. To test the seven hypotheses used path analysis is a technique to analyze the causal relationships that occur in multiple regression when the independent variables affect the dependent variable not only directly but also indirectly. Conclusion The results of this study were (1) Public investment have a significant effect on economic growth, (2) Private investment has no significant effect on economic growth, (3) Investment significant effect on the government's employment, (4) Economic growth significantly influence the energy absorption employment, (5) economic growth have a significant effect on the public welfare, (6) the absorption of labor significantly influence the public welfare.