Analysis of the influence of poverty, human development index, and unemployment on economic growth in the regency/city of Gorontalo Province: 2012–2021 study

Renea Shinta Aminda, Ananda Septiani, M Imam Sundarta, Syahrum Agung, Ecin Kuraesin, Subur Karyatun, Endri Endri Endri

Article ID: 3513
Vol 8, Issue 4, 2024

VIEWS - 472 (Abstract) 243 (PDF)

Abstract


The low economic growth of Gorontalo province and the smallest PDRB ADHK in Indonesia are the reasons why this research needs to be carried out to look at the influence of the number of poor people, human development index and unemployment on economic growth in the districts/cities of Gorontolo Province, as a result, there is a mismatch between empirical and theoretical, this research was conducted to fill the information gap on how the three variables influence economic growth, This research was conducted to determine the effect of the number of poor people, the human development index. and unemployment on economic growth, research population data on the number of poor people, HDI, Unemployment, Economic growth, the sampling technique of this research is non-probability sampling, where the full sampling method is applied, Gorontalo Province with six regencies/cities is sampled in this research, with data taken in 2012–2021, the data analysis technique uses panel data regression, with three-panel data model estimates namely CEM, FEM, REM and model selection techniques, Chow test, Hausmant Test and Lagrange multiplie equipped with classical assumption tests and T hypothesis tests and F, the research Finding show that the number of poor people in the Regency/City of Gorontalo Province does not have a significant effect on economic growth in Gorontalo Province. Rice, which is the staple food for the people of Gorontalo, apart from rice, the high level of cigarette consumption among the people of Gorontalo, apparently also has an impact. large impact on the increase in the number of poor people, the human development index in the Regency/City of Gorontalo Province has a significant influence on the economic growth of Gorontalo Province where every increase that occurs in the HDI results in an increase in economic growth in Gorontalo Province, thirdly, the open unemployment rate in the Regency/City of Gorontalo Province does not have a significant effect on the economic growth of Gorontalo Province, conclusion of this research is only HDI affects economic growth in Gorontalo.


Keywords


economic growth; poverty; human development index; unemployment

Full Text:

PDF


References


Abraham, T.W., Ahmed, U.A. (2011). Economic growth and human development index in Nigeria: An error correction model approach. International Journal of Administration and Development Studies, 2(1), 239-254.

Al-Abri, A., Genc, I. H., & Naufal, G. S. (2018). The Impact of Government Spending on GDP in a Remitting Country. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3217494

Ariani, M.B., Nani, I.A.J. (2021). Analysis of Composite Indicators of Human Development Index and Poverty on Economic Growth in Banten Province (Indonesian). Jurnal Dinamika Ekonomi dan Bisnis, 18(01), 1-12. https://doi.org/10.34001/jdeb.v18i1.1504

Badan Pusat Statistik. (2023). Gorontalo Regency/City ADHK GRDP Growth Rate (Percent), 2020-2023 (Indonesian). Badan Pusat Statistik Gorontalo.

Balisacan, A. M., Pernia, E. M., & Asra, A. (2002). Revisiting Growth and Poverty Reduction in Indonesia. Poverty, Growth, and Institutions in Developing Asia, 191–218. https://doi.org/10.1057/9781403937797_6

Bennington, L., & Habir, A. D. (2003). Human resource management in Indonesia. Human Resource Management Review, 13(3), 373–392. https://doi.org/10.1016/s1053-4822(03)00041-x

Brown, L. R., Gardner, G., & Halweil, B. (2014). Beyond Malthus. Routledge. https://doi.org/10.4324/9781315071589

Chand, K., Tiwari, R., & Phuyal, M. (2017). Economic Growth and Unemployment Rate: An Empirical Study of Indian Economy. PRAGATI: Journal of Indian Economy, 4(02). https://doi.org/10.17492/pragati.v4i02.11468

Dada, J.T., Fanowopo, O. (2020). Economic growth and poverty reduction in Nigeria: The role of institutions. Ilorin Journal of Economic Policy, 7(1), 1–15.

Dauda, R. S. (2017). Poverty and Economic Growth in Nigeria: Issues and Policies. Journal of Poverty, 21(1), 61–79. https://doi.org/10.1080/10875549.2016.1141383

Efendi, R., Indartono, S., & Sukidjo, S. (2019). The Relationship of Indonesia’s Poverty Rate Based on Economic Growth, Health, and Education. International Journal of Multicultural and Multireligious Understanding, 6(2), 323. https://doi.org/10.18415/ijmmu.v6i2.704

Elistia, E., & Syahzuni, B. A. (2018). The correlation of the human development index (HDI) towards economic growth (GDP per capita) in 10 ASEAN member countries. JHSS: Journal of Humanities and Social Studies, 2(2), 40-46. https://doi.org/10.33751/jhss.v2i2.949

Fazzari, S. M. (1994). Why Doubt the Effectiveness of Keynesian Fiscal Policy? Journal of Post Keynesian Economics, 17(2), 231–248. https://doi.org/10.1080/01603477.1994.11490025

Fosu, A. K. (2017). Growth, inequality, and poverty reduction in developing countries: Recent global evidence. Research in Economics, 71(2), 306–336. https://doi.org/10.1016/j.rie.2016.05.005

Gweshengwe, B., & Hassan, N. H. (2020). Defining the characteristics of poverty and their implications for poverty analysis. Cogent Social Sciences, 6(1). https://doi.org/10.1080/23311886.2020.1768669

Hakim, M. A. A., Suryantoro, A., & Rahardjo, M. (2021). Analysis of the Influence of Tourism Growth on Economic Growth and Human Development Index in West Java Province 2012-2018. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 160–169. https://doi.org/10.33258/birci.v4i1.1561

Hasan, Z. (2021). The effect of economic growth and human development index on poverty in Indonesia. Journal of Economics and Sustainability, 3(1), 12-12. https://doi.org/10.32890/jes2021.3.1.5

Jermsittiparsert, K., Saengchai, S., Boonrattanakittibhumi, C., & Chankoson, T. (2019). The impact of government expenditures, gross capital formation, trade, and portfolio investment on the economic growth of Asean economies. Journal of Security & Sustainability Issues, 9(2), 571-584. https://doi.org/10.9770/jssi.2019.9.2(16)

Kell, H. J., Robbins, S. B., Su, R., & Brenneman, M. (2018). A Psychological Approach to Human Capital. ETS Research Report Series, 2018(1), 1–23. Portico. https://doi.org/10.1002/ets2.12218

Mahroji, D., & Nurkhasanah, I. (2019). The Effect of the Human Development Index on the Unemployment Rate in Banten Province. Qu-Journal of Economics, 9(1), 51-72. https://doi.org/10.35448/jequ.v9i1.5436

Marwa, T. (2018). Does Government Budget Drive Regional Economic Growth? International Journal of Economics and Financial Issues, 8(5), 261-265.

Mellor, J.W., Johnston, B.F. (1984). The world food equation: Interrelations among development, employment, and food consumption. Journal of Economic Literature, 22(2), 531-574.

Modjo, M.I. (2017). Poverty reduction in Indonesia: A brief institutional history. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 1(3), 170-194.

Mukarramah, I.L., Ruslan, D., Yolanda, C., Hardianti, A. (2020). Analysis of the Effects of Capital Expenditure, Human Development Index and Labor Absorbed to Economic Growth and Poverty in Aceh Province. International Journal of Research and Review, 7(8), 91-101.

Munzir, A.G., Syechalad, M.N., Silvia, V. (2017). The Effect of Government Expenditures, Private Investment and Labor on Economic Growth in Pidie District. Sriwijaya International Journal of Dynamic Economics and Business, 1(4), 357-374.

Nansadiqa, L., Masbar, R., Majid, M.S.A. (2019). Does economic growth matter for poverty reduction in Indonesia? East African Scholars Journal of Economics, Business and Management, 2(2), 46-52.

Narayan, D., Chambers, R., Shah, M.K., Petesch, P. (2000). Voices of the Poor: Crying out for Change. Oxford University Press for the World Bank.

Oemar, F., Endri, E., & Nugroho, M. T. (2023). The potential of paying zakat on income: Evidence from an emerging economy. Corporate Governance and Organizational Behavior Review, 7(2), 128–137. https://doi.org/10.22495/cgobrv7i2p11

Rodliyah, D. (2023). The Effect of HDI, Unemployment, and Investment on GRDP and Poverty. Efficient: Indonesian Journal of Development Economics, 6(2), 199-209. https://doi.org/10.15294/efficient.v6i2.59000

Rulandari, N., Natision, A., Esien, E.B., Kesmawan, A.P. (2022). The Policy Implementation of Social Ministry’s Cash Assistance Program During the Covid-19 Pandemic in Jakarta. Journal of Governance and Public Policy, 9(1), 48-61. https://doi.org/10.18196/jgpp.v9i1.13113

Sadiku, M., Ibraimi, A., & Sadiku, L. (2015). Econometric Estimation of the Relationship between Unemployment Rate and Economic Growth of FYR of Macedonia. Procedia Economics and Finance, 19, 69–81. https://doi.org/10.1016/s2212-5671(15)00009-x

Safitri, R.E., Aisyah, S. (2019). Analysis of the Effect of Human Development Index, Wages, Inflation, Poverty and Population on Economic Growth in Central Java in 2013-2017 (Indonesian) [PhD thesis]. Universitas Muhammadiyah Surakarta.

Saluy, A.B., Abidin, Z., Djamil, M., et al. (2021). Employee productivity evaluation with human capital management strategy: The case of COVID-19 in Indonesia. Academy of Entrepreneurship Journal, 27(5), 1-9.

Silitonga, T.B., Sujanto, B., Luddin, M.R., et al. (2020). Evaluation of Overseas Field Study Program at the Indonesia Defense University. International Journal of Innovation, Creativity and Change, 12(10), 554-573.

Sulistyowati, P., Aminda, R.S. (2022). Determinants of economic growth in East Nusa Tenggara Province (Indonesian). Syntax Idea, 4(4), 756-768.

Surgawati, I. (2020). Pengeluaran Pemerintah dan Pertumbuhan Ekonomi: Hipotesis Keynes Versus Teori Wagner. WELFARE Jurnal Ilmu Ekonomi, 1(1), 25–34. https://doi.org/10.37058/wlfr.v1i1.1474

Vizano, N.A., Sutawidjaya, A.A., Endri, E. (2021). The Effect of Compensation and Career on Turnover Intention: Evidence from Indonesia. Journal of Asian Finance, Economics, and Business, 8(1), 471-478.

Taruno, H. T. (2019). Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018. The Indonesian Journal of Planning and Development, 4(2), 49–56. https://doi.org/10.14710/ijpd.4.2.49-56

Taqi, M., Ali, M. S. e, Parveen, S., Babar, M., & Khan, I. M. (2021). An analysis of Human Development Index and Economic Growth. A case study of Pakistan. IRASD Journal of Economics, 3(3). https://doi.org/10.52131/joe.2021.0302.0042

Tupamahu, M. K., Hanoeboen, B. R., & Rijoly, J. C. D. (2021). The effect of inflation and economic structure changes on farmer exchange value (NTP) in eastern Indonesia. Jurnal Cita Ekonomika, 15(1), 33–42. https://doi.org/10.51125/citaekonomika.v15i1.3491

Walujadi, D., Indupurnahayu, I., Endri, E. (2022). Determinants of Income Inequality Among Provinces: Panel Data Evidence from Indonesia. Quality Access to Success, 23(190), 243-250. https://doi.org/10.47750/qas/23.190.26

Zhang, J., Zhang, R., Xu. J., et al. (2021). Infrastructure investment and regional economic growth: Evidence from Yangtze River Economic Zone. Land, 10(3), 320. https://doi.org/10.3390/land10030320




DOI: https://doi.org/10.24294/jipd.v8i4.3513

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Renea Shinta Aminda, Ananda Septiani, M Imam Sundarta, Syahrum Agung, Ecin Kuraesin, Subur Karyatun, Endri Endri

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.