Influence of Natural Resources on the Income of Regional Development
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Development of the region is highly dependent on natural resources owned by the region and demand for commodities produced from the power source. The more resources that can be processed for the commodity, the faster growth in the region will be. The research objective was to analyze the influence of natural resources (SDA) which is the height of water volume/ha, the width of irrigated land and the length of farm roads, directly and through the main activities of agribusiness in regional development to increase the income of farmers. The research method using primary data out of 100 farmers applied simple random sampling where the data were analyzed using structural equations model method (SEM). The research result of the structural equations model estimation showed that natural resources (SDA) which is the height of water volume/ha, the width of irrigated land and the length of farm roads does not have significant influence on the increase of paddy farmers’ income. And through the main activities of agribusiness, it gives significant influence on the the increase of paddy farmers’ income.