Land Transportation effects on Manufacture and Regional Economy of Sumatra of Indonesia

Abstract

The study aimed to determine the effect simultaneously between land transportation and manufacturing industry on economic improvement An explanation research was conducted to obtain the causal relationship between land transportation and manufacture. The data used in this study were off secondary sources and time series data forms from 2006-2015 data from the Central Statistics Agency (BPS) of Labuhan Batu Regency. Regression analysis was applied the mathematical relationship between the output variable or dependent (Y) with one or several input / independent variables (X). The mathematical relationship is used as a regression model that is used to predict or predict the output value (Y) based on a particular input value (X). The results of this study indicated that simultaneously the land transportation variable and manufacturing industry have a positive and significant effect on the economic improvement variable. The results obtained a t_count value of 3.599. Thus t_count is greater than t table (3.241> 1.894); then H₀ is rejected H_A is accepted, meaning that partially there is a positive and significant influence between land transportation and economic improvement. The results obtained a t_count of 0.112. Thus t_count is greater than t table (0.112 <1.894) then H₀ is accepted H_A is rejected, meaning that partially there is no positive and significant influence between the manufacturing industry on economic improvement.