ANALISIS PENGARUH KEBIJAKAN SUSTAINABLE LIVELIHOOD TERHADAP VARIASI CAPAIAN PDRB PER KAPITA DI PROVINSI JAWA TENGAH

Abstract

This study aims to analyze the factors influencing economic growth through Gross Regional Domestic Product (GRDP) and to further evaluate the sustainable livelihood policies implemented in Central Java Province.  This study employs a quantitative approach by applying a panel data regression model that combines time series data (2017–2023) with cross-sectional data (35 regencies/cities in Central Java Province), using the EViews. The partial test results indicate that the UMKM variable does not affect GRDP per capita. The UMKM using the internet variable has a significant effect, while the labor force variable is the most dominant and significant factor influencing GRDP per capita. Simultaneously, all independent variables used in this study have a significant effect on GRDP per capita. The implications of this study for regency and city governments in Central Java Province suggest that policymakers need to focus on developing truly high-quality UMKM through flagship UMKM development programs. These programs should emphasize strengthening managerial capabilities, improving access to financing, enhancing product quality standards, and supporting market expansion. This study contributes by providing an empirical approach to evaluating sustainable livelihood policies in Central Java Province through the integration of fiscal variables, investment, labor, as well as UMKM empowerment and digitalization indicators, thereby enriching the literature on regional economic development.