The impact of agriculture investment on economic growth :: Case study investment from poor farmers incomes improvement through innovation project (PFI3P) in Temanggung District, Central Java, Indonesia

GUNAWAN, Aris, Donghun KIM

2008 | Tesis | S2 Magister Ekonomika Pembangunan

This study analyses the impact of investment in agriculture sector, which is village investment activities from Poor Farmers Incomes Improvement through Innovation Project (PFI3P) in 20 sub-districts in Temanggung District Central Java Indonesia, on economic growth. This applies panel data from those sub-districts for the period 2001 to 2006. The econometric results show that agriculture investment from Poor Farmers Incomes Improvement through Innovation Project (PFI3P) has a positive and significant cumulative effect on economic growth. The results also show that number of labor in agriculture sector has a strong positive and significant effect on economic growth and the interaction between labor and accumulative investment from the project has a positive and significant effect on economic growth. The econometric results show that there is positive and significant effect from this project on economic growth in Temanggung District after the project implemented.

Kata Kunci : Inovasi pertanian,Pertumbuhan ekonomi,Poor for man incomes improvement through innovation economic growth