Electronic Theses and Dissertation

Aceh province is one of the province that has the potential of natural resources in indonesia, but the economic conditions and economic growth (gdp per capita) is relatively lagging behind compared to other provinces in indonesia. in this study, it is need to conduct an assessment of the influence of the growth of private investment, public investment growth (development expenditure), and population growth on economic growth in the province of aceh. this study aims to quantify and analyze the effect of investment and population on gross regional domestic product (grdp) in the province of aceh. this research was using time series data from 1991-2010 of gross regional domestic product (grdp) of aceh province, working population and investment from central bureau of statistics (bps) of aceh province, investment coordinating board of aceh province, revenue service of aceh province and other related agencies. the estimation model is log of aceh investment and log of working population in aceh as independent variable, and gross regional domestic product (grdp) of aceh as dependent variable, the research found that the effect of investment on gross regional domestic product (grdp) is not significant the effect of working population is elastic and significant, 1% increase of working population would lead to 1.65 % increase of grdp. increasing of working population will improve the productivity. thus the need for government policy to increase the population of people who work or policies that enhance productivity which in tum would increase the gdp of aceh. key words: gross regional domestic product (grdp), investment, population