Contribution of Real Estate Activities and Financial/Insurance Industry Activities to the Formation of Gross Domestic Product

• Published in: Research in world economy 2020-06, Vol.11 (3), p.192
• Main Authors: Muda, Iskandar, Dharsuky, Abikusno, Asriana, Nurul, Ridhani, Devi
• Format: Article
• Language: English
• ISSN: 1923-3981; 1923-399X
• DOI: 10.5430/rwe.v11n3p192

This research examines and proves the contribution of real estate activities and financial and insurance industry activities to the formation of Indonesia's Gross Domestic Product in 2000-2017. The issue that will be discussed is about the variables that influenced the formation of Indonesia's Gross Domestic Product in 2000-2017. The purpose of this study is to prove the influence of the contribution of real estate activities and financial and insurance industry activities to the formation of Gross Domestic Products in Indonesia. To analyze and prove the hypothesis an empirical test was carried out in the form of Q Square prediction with Smart PLS 3.1 on the magnitude of the influence of the activity sub-sector. The method used in data collection is a combination of secondary data derived from Asia Development Bank data. The method used to analyze data is the time series data method. The results showed that Real Estate Activities is an independent variable that does not have a positive and significant effect on the formation of a total Gross Domestic Product. It can be seen from the statistical t value of 1,800> from the t table value of 1,964 and this can be proven by the original sample value of 0.073 and the significance of 0.073> 0.05 which means that Real Estate Activities has no positive effect and significant to the formation of total Gross Domestic Product. Variable Financial and Insurance Activities are independent variables also do not have a positive and significant effect on the formation of total Gross Domestic Product. This can be seen from the statistical t value of 0.401> from the t table value of 1.964 and this can be proven by the original sample value of 0.689 and no significance of 0.005 = 0.05 which means that Financial and Insurance Activities have no effect positive and significant towards the formation of total Gross Domestic Product.