Abstract

This study aims to analyze the influence of labor and industrial agglomeration on economic growth in East Java. The independent variables used in this study are the number of workers and industrial agglomeration and the dependent variable of East Java's economic growth. The analysis period in this study is from 2014 – 2019 using secondary data obtained from the Central Statistics Agency (BPS). The method used is the analysis of fixed effect model panel data in 38 districts / cities in East Java province. This research was processed using the Eviews 10 software tool. Statistical tests use simultaneous tests (F test), partial tests (t test), and coefficient of determination (𝑅2). The results of the study simultaneously show that all variables have a positive and significant influence on economic growth in East Java. Partially, the number of workers and industrial agglomeration have a positive and significant effect on economic growth in East Java.

Keywords: Number of workers, industrial agglomeration, and economic growth