Investment in the public sector is an important
thing to consider, with adequate public sector services it
will help the community achieve better welfare. When
people's welfare improves, it means that the economy in a
country is in a stable condition so that it will attract
foreign investment to enter the country. Cambodia, Laos,
and Indonesia are countries that are in the ASEAN region
but have small expenditures for the public sector even
though the population is large in contrast to countries such
as Singapore, Malaysia, and Thailand which have quite
large public sector expenditures. This study tries to
analyze the factors that influence public sector investment
in seven ASEAN countries. The estimation technique in
this study uses the Panel Data model. This model uses 7
cross section data units and 7 time series data sets. The
Panel Data model is the most appropriate model to use
because this study uses a time series of trade flows of each
country which is then cross-sectioned with time series data
of other countries' trade flows. The results showed that the
variable of tax revenue and public debt had a positive and
significant effect on public sector investment in the seven
ASEAN countries, while the economic growthand
population did not affect public sector investment in the
seven ASEAN countries
Keywords :
public invesment, tax revenue, public debt, economic growth, and population.