Resumen de Does The Suitability of Industry 4.0 Roadmap Have an Impact on Improving The Economy?
Budi S. Purnomo, Alfira Sofia, R Nelly Nur Apandi
West Java Province claims to have realized investment in line with the Industry 4.0 policy. This claim is based on gross added value in the five leading sectors of the processing industry, which had the highest percentage among other areas. On the other hand, one of the goals of development is to achieve economic improvement. Many previous studies have examined the effect of investment realization on economic growth. Still, very few have specifically considered the recognition of investment specifically in the leading sectors of the Industry 4.0. West Java, as one of the best investment destination provinces with the suitability of a manufacturing roadmap set by the central government, is expected to have a good economic improvement. So this study aims to prove the effect of investment realization on economic improvement in all regencies/cities in West Java empirically.The design of this study is causal research using a simple linear regression analysis method. The sampling technique used was purposive, namely 27 regencies/cities in West Java. Secondary data sources are documents from the Board of Investment and Integrated Licensing (BPMPT), the Investment Coordinating Board (BKPM), and the West Java Central Board of Statistics (BPS). The indicators used for investment realization variables are the total investment value and labor absorption. While the indicators for economic growth variables are the Expenditure Index, Human Development Index (HDI), and Per Capita Expenditure (PPP).The results of the study showed that there were positive and significant effects of the investment realization variable on the economic growth variable for all the models tested. This finding supports the theory, which stated that the suitability of the investment roadmap would further enhance economic growth. However, there are differences in the determination coefficients and the correlation coefficients. Correlation coefficients between investment value and labor absorption in 5 sectors with HDI scores at the provincial level showed a very strong relationship. While the correlation coefficients of the linear regression model from various models tested to measure the effect of investment realization on economic growth in the Regencies/Cities in West Java showed weak correlation. This research shows that the proposed model still needs to be finalized with other variables, including industrial performance, investment return, tax effectiveness, and government governance
