The Influence of Economic Growth towards Private Investment, Employment and Social Welfare in Kapuas District, Central Kalimantan Province

Abstract

Economic development by improving private investment activity should be able to increase economic growth and to absorb more labor. Economic growth characterized by rising per capita income showed an increase in purchasing power parity, which in turn will increase effective demand in respect of goods and services, so that there will be an increase in social welfare. Based on these descriptions, the rate of economic growth in the region is less impact on the creation of jobs for the community.

These conditions encourage a study to determine and analyze in depth the effect of private investment on economic growth, employment and social welfare in Kapuas district, Central Kalimantan province. For this purpose, conducted a quantitative study using path analysis (path analysis) with SPSS software tools. To optimize the path analysis is used time series data for the period 2001 to 2011 in Kapuas district, Central Kalimantan province.

The results are: (1)  Private Investments influential positive not-significant towards economic growth in Kapuas district, Central Kalimantan province, (2) Private Investments influential negative not-significant towards employment in Kapuas district, Central Kalimantan; (3) Economic growth influential positive not-significant towards employment in Kapuas district, Central Kalimantan, (4) Economic growth influential positive not-significant towards social welfare in Kapuas district, Central Kalimantan, and (5) Employment influential positive not-significant towards social welfare in Kapuas district, Central Kalimantan.

Keywords : Economic Growth, Private Investment, Employment and Social Welfare