Research Paper
Year: 2020 | Month: August | Volume: 7 | Issue: 8 | Pages: 91-101
Analysis of the Effects of Capital Expenditure, Human Development Index and Labor Absorbed to Economic Growth and Poverty in Aceh Province
Mukarramah, Irsad Lubis, Dede Ruslan, Cindy Yolanda, Anisha Hardianti
Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Mukarramah
ABSTRACT
This study aims to analyze the effect of capital expenditure, human development index and labor absorbed partially and simultaneously on poverty through economic growth in Aceh Province. The type of data used in this study is quantitative data while the data source used in this study is secondary data. The objects in this study are all District/City in Aceh Province consisting of 18 regencies and 5 cities. This study uses pooled data that combines time series data and cross sections for five years, from 2014 to 2018. The data analysis method used in this study is path analysis. The results showed that capital expenditure, human development index and labor absorbed simultaneously have a significant effect on economic growth. Capital expenditure has a positive but not significant effect on economic growth. Human development index and labor absorbed have a positive and significant effect on economic growth. Then capital expenditure, human development index and labor absorbed simultaneously have a significant effect on poverty. Capital expenditure partially has a negative but not significant effect on poverty. Human development index and labor absorbed has a negative and significant effect on poverty and economic growth has a positive and significant effect on poverty. Capital expenditure, human development index and labor absorbed have no significant effect on poverty through economic growth.
Keywords: Capital Expenditure, Human Development Index, Labor Absorbed, Poverty, Economic Growth
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