Analysis of the Effect of Human Resources Investment and Economic Growth on Poverty Levels in the Island Province of Sumatra

Abstract

Poverty is one of the fundamental problems which has always been the center of attention of the government in Indonesia. Poverty is a complex problem in areas in Indonesia because poverty is not only related to the problem of low levels of income and consumption, but also related to the low level of education, health and also about the powerless of the poor to participate in process development. This study aims to determine the effect of education investment, health investment and economic growth on poverty levels in the province of Sumatra. The analytical method used is Error Correction Model (ECM). The results of the study show that education investment has a negative and significant effect on the provincial poverty level on the island of Sumatra, while health investment has a proven negative and significant effect. then economic growth has a negative and significant effect on the provincial poverty level on the island of Sumatra. But in the short term the three independent variables do not have a significant effect on the provincial poverty level on the island of Sumatra.