Improving the Human Development, Reducing Poverty and Promoting the Economic Growth: A Sustainable Development Strategy

Abstract

This study analyzes the macro-relationship between three main variables, namely, poverty, the human development index, and economic growth. This study uses the Vector Autoregressive/ Vector Error Correction Model. The variables measured in this study included household income per capita, community education level, poverty, and economic growth. This research was conducted using a quantitative method by capturing information from quantitative data. Meanwhile, the quantitative data were obtained from official publications of government agencies and analyzed using panel data regression. This study used the stationarity test and cointegration test. The study’s results concluded that economic growth was affected by the human development index. The human development index affects poverty. Also, the poverty affects economic growth. Thus, a unidirectional causality existed between the human development index, economic growth, and poverty.