The Effect of Investment on Indonesian Economic Growth: A General Evaluation Estimator Approach

Abstract: This study examine the effect of investment on Indonesia's economic growth with the general evaluation estimator model. The methodology used is multiple linear regression methods with lag (-1) by using Eviews 6. The results show that Investment (-1) and tax (-1) positively affect economic growth, but negatively to interest rate (-1). This needs to be considered further whether the regulations provided by the government regarding interest rates are right on target to increase economic growth.