The Effect Of Investment, Labour, And Inflation On The Production Value Of Agricultural Processing Industries In Southeast Sulawesi Province

This study aims to analyze the effect of investment, labour, and inflation on the production value of agricultural processing industries in twelve regencies and cities in Southeast Sulawesi between 2011 and 2020. The study used secondary data of a data panel with the Error Correction Model analysis tool. The ECM-panelresults showed that there were differences in the characteristics of the production value of the agricultural product processing industry between districts/cities. In addition, this study also revealed that investment and labour have a positive and significant effect on the production value of the agricultural product processing industry in the short and long term.Meanwhile, inflation have no significant effect on the production value of agricultural processing industries,both in the short and long term.The agricultural production value development was dominated by small and medium enterpriseswith relatively small and fluctuating investments, resulted in low employment. It is critical to accelerate industrial estates to create a stable investment climate and increase farmers' productivity in maintaining the sustainability of industrial raw materials.