Open AccessThe Effects of Monetary Variables on the Growth of Small and Medium Industry in Aceh Province
Author(s) -
Ade Habya Fijay,
Vivi Silvia,
Chenny Seftarita
Publication year - 2021
Publication title -
international journal of quantitative research and modeling
Language(s) - English
Resource type - Journals
eISSN - 2722-5046
pISSN - 2721-477X
DOI - 10.46336/ijqrm.v2i3.175
Subject(s) - inflation (cosmology) , panel data , investment (military) , variables , economics , bank credit , business , monetary economics , econometrics , mathematics , statistics , political science , law , physics , politics , theoretical physics
This study aims to analyze the effect of inflation, bank credit, and SMI investment on the growth of small and medium industries in Aceh Province. This study uses panel data consisting of 23 districts/cities in Aceh Province during the period 2014 to 2020. The analysis model used in this study is a panel data regression model. The results found in this study are variables that have a significant effect on the growth of SMIs in Aceh Province are inflation and investment in SMIs. Meanwhile, the banking credit variable has not had a statistically significant effect on the growth of SMIs. The inflation variable has a negative and significant effect on the growth of SMIs so that uncontrolled inflation will have a negative impact on the growth of SMIs. Meanwhile, SMI investment has a positive and significant impact on the growth of SMIs so that various targeted investment policies are needed so that they can support the development of SMIs in Aceh Province.