LABOR FORCE PARCIPATION RATE, FDI, ELECTRICITY AND WATER DISTRIBUTION ON ECONOMIC GROWTH: A DYNAMIC PANEL DATA ANALYSIS

This study aims to analyze economic growth where the economic increase can be measured gross
domestic product (GDP) at the national level and gross regional domestic product (GDP) at the
regional level. Economic growth is influenced by the labor force participation rate (LFPR), foreign
direct investment (FDI), electricity distribution, clean water volume distribution with a dynamic
panel data analysis method approach with 34 provinces in 2010-2020 sourced from the central
statistics agency. The results show that the FD-GMM assumption does not meet 3 estimates
(sargan test, arellano-bond test and unusualness) then it will be continued on the SYS-GMM
assumption that successfully meets 3 estimates so that the results of SYS-GMM regression will be
used in the discussion. Continued on the long-term and short-term impacts show that the
distribution of clean water volume slows down economic growth in Indonesia, because there are
still many regions in Indonesia that have not reached the availability of clean water in household
and industrial activities, but 3 other variables are able to have a positive impact on Indonesia's
economic growth
Kata Kunci: Electricity, Water, FDI, LFPR, Dynamic Panel