Economic Growth, Unemployment, and Human Development on Poverty in North Sumatra Province in 2011-2020

Abstract

A B S T R A C T Article Information National development that is running in Indonesia is expected to create an even distribution of welfare so that no one is left behind and experiences poverty. However, the fact is that the development only touches the interests of certain groups and the results can only be enjoyed by a few people. This study aims to analyze the effect of economic growth, unemployment and human development on poverty levels in North Sumatra during 2011-2020. The analytical method used in this research is panel data regression with Random Effect Model (REM). The results showed that economic growth and human development had a negative and significant impact on poverty in North Sumatra Province. In contrast to the results found in unemployment, this variable has no statistically significant effect on poverty in this province. The results of this study are expected to be able to enrich references in reducing regional poverty levels. There is a need for government intervention to increase economic growth and human development. Increasing economic growth can be done by expanding job opportunities, especially during the current covid pandemic, while increasing human development can be intervened through education subsidies, and cheap health services, especially for the poor.