Email this article Factors Influencing the Agricultural Sector and Economic Growth of West Pakpak Regency: Evidence from Agrarian and Muslim Societies
Abstract
The agricultural sector was the main sector in various countries before technological developments, which then led to the agricultural sector driving the industrial and service sectors. Economic growth refers to the process of increasing production in an economy, which is reflected in the form of an increase in national income. A country is considered to be experiencing positive economic growth when its real GDP increases and this is one of the benchmarks for assessing economic progress. High economic growth, especially in the long term, is crucial for reducing or even eliminating poverty levels. The theoretical framework emphasizes that economic growth creates or increases job opportunities, which in turn reduces the unemployment rate and increases wages or income for groups. This research is motivated by the low value added in the agricultural sector which is reflected in the low growth of the agricultural sector. This research aims to determine the factors that can influence the agricultural sector and economic growth in Pakpak Bharat Regency. The data used in this research is agricultural sector data in Pakpak Bharat Regency. The data source for this research comes from the Central Statistics Agency (BPS) of Pakpak Bharat Regency which was analyzed using associative analysis. The results of this research show that the independent variable, namely the Agricultural Sector, and the dependent variable, namely economic growth, have a positive influence. Based on the t-test. The calculated t value was obtained at 75,372 so that the agricultural sector had a positive and significant effect on economic growth in Pakpak Bharat Regency. The agricultural sector, which is one of the sources of foreign exchange earnings for the country, if it influences economic growth, will continue to improve the economy in a region and country..
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DOI: http://dx.doi.org/10.21927/jesi.2024.14%20(1).230-245
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