ANALYSIS OF THE EFFECT OF SMALL MICRO BUSINESS DEVELOPMENT MEDIUM TO ECONOMIC GROWTH MSME SECTOR IN INDONESIA

Abstract

The purpose of research  to determine the effect of MSME’s growth on economic growth in the sector of MSME’s in Indonesia. This study uses descriptive analysis using multiple linear regression method by examining the effect of MSME’s export and MSME’s investment on Gross Domestic Product of MSME in Indonesia. This study uses sample selection with purposive sampling technique with secondary data sourced from the Ministry of Cooperatives and MSME in Indonesia. The estimation result shows that F-statistic (284,5749)> F-table (4,458), then rejected, it means that independent variable (MSME’s eskpor and MSME’s Investment) simultaneously have a significant effect on the dependent variable (economic growth in MSME’s sector) 95% confidence. And in table R square seen that 98,78 percent of economic growth in sector of MSME’s in Indonesia can be explained by amount of MSME’s export and investment of MSME.

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