Analysis Effect of Household Consumption, Investment and Labor to Economy Growth In Sumatera Utara

Economic growth is related to the process of increasing
the production of goods and services in the economic activities of society which is expected to increase the income of the
community. The economic growth in Province of North Sumatera
in the periode of 2006 to 2016 underwent fluctuating changes,
so that it is necessary to be further studied on such the
causing factors. This study aims to: identify the effect of household consumption on economic growth, identify the effect of investment on economic growth, identify the influence of Labor on economic growth, and identify the effect of interest rate on economic
growth . The data used in this research is secondary data in 2006-
2016 in Province of North Sumatera. Data obtained from various
agencies, namely: Department of Labor and Transmigration,
Central Statistics Agency of Province of North Sumatra, some
other sources such as journals and relevant research results.
Methods of analysis using Two Stage Least Square method
(TSLS). The results of the study found that: Household consumption has a positive and significant effectto economic growth, Investment has positive and significant effect to economic growth, Labor has positive and significant impact to economic growth, and interest rate has a negative and significant effect on economic growth.