Research Paper
Year: 2020 | Month: August | Volume: 7 | Issue: 8 | Pages: 71-80
Analysis of the Effects of Investment and Unemployment on Economic Growth and Poverty in North Sumatra Province
Cindy Yolanda, Irsad Lubis, Dede Ruslan, Anisha Hardianti, Mukarramah
Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Cindy Yolanda
ABSTRACT
This study aims to examine and analyze the effect of investment and unemployment on economic growth and poverty in the District/City of North Sumatra Province. The type of data used in this study is the type of quantitative data while the source of the data used in this study is secondary data. The objects in this study are all districts and cities in North Sumatra Province which consists of 33 District/City. This study uses pooled data that combines time series data and cross sections for 5 years from 2014 to 2018. The data analysis method used in this study is path analysis. The results based on the path analysis method show that directly the investment variable has a positive and significant effect on economic growth and the unemployment variable has a negative and significant effect on economic growth. Investment does not have a significant negative effect on poverty, the unemployment variable has a significant positive effect on poverty and economic growth has a significant negative effect on poverty. While indirectly the investment variable through economic growth influences poverty. Unemployment variables affect poverty through economic growth.
Keywords: Investment, Unemployment, Economic Growth, Poverty
[PDF Full Text]