| dc.description.abstract | Domestic and foreign investment play an important role in the East Java economy. However, within these past five years the growth of both types of investment has been fluctuated and tends to decrease. One of the objectives research is to analyze factors affected economic variables of East Java province: Gross Regional Domestic Product (GRDP), inflation and unemployment. This research is conducted using econometric model that formulated in simultaneously equation with approximated Two Stage Least Squares (2SLS). Results of this study show that GRDP is influenced by real domestic investment, a change in real foreign investment, time trend, dummy of decentralization and the last year GRDP. Inflation is influenced by GRDP, time trend and the last year inflation. Unemployment is affected by real domestic investment, time trend and the last year unemployment. The simulation also shows that an increase in domestic and foreign investment have the same positif impact on GRDP and inflation but negative impact on unemployment. Further, foreign invesment has a greater impact on GRDP and unemployment compared to domestic invesment, conversly. | id |
