The Effect of Human Capital and Unemployment on Poverty Through Economic Growth and The Moderating Role of Investment
Abstract
The aims of this study are: (1) to analyze the effect of human capital and unemployment on economic growth. (2) analyze the effect of human capital, unemployment, and economic growth on poverty. (3) analyze the effect of human capital and unemployment on poverty through economic growth. (4) analyze the effect of investment moderation between human capital on economic growth. (5) analyze the effect of investment moderation between unemployment and poverty. The approach used in this study uses a quantitative approach. The data is secondary data sourced from the Indonesian Central Statistics Agency and the Central Statistics Agency of South Sulawesi in 2021. The data collection method uses secondary data from documentation related to years of education, unemployment, foreign and domestic capital investment, and Gross Domestic Product. Regional (GDP) and the number of poor people in South Sulawesi Province for 2017-2021. The analytical method uses descriptive statistics, classical assumption, path analysis, and Sobel. The study's results prove that: (1) Human capital positively and significantly affects economic growth. (2) Unemployment has a negative and significant effect on poverty. (3) Human capital has a negative and significant effect on poverty. (4) Unemployment has a positive and significant effect on poverty. (5) Economic growth has a negative and insignificant effect on poverty. (6) Human capital positively and significantly affects poverty through economic growth. (7) Unemployment positively and significantly affects poverty through economic growth. (8) Investment can positively and significantly moderate the relationship between human capital and economic growth. (9) Investment can positively and significantly moderate the relationship between unemployment and poverty.
Downloads
References
Alihar, F. (2018). Poverty Analysis in West Sumatra. 66, 37–39. https://www.fairportlibrary.org/images/files/RenovationProject/Concept_cost_estimate_accepted_031914.pdf
Amalia, F. (2012). The Effect of Education, Unemployment, and Inflation on Levels Poverty in Eastern Indonesia (KTI) 2001-2010 Period. Journal Econoscience, 10(2), 158–169. https://www.neliti.com/publications/390664/the-effect-of-the-number-of-population-of-educational-age-and-unless-of-educatio
Astuti, M., & Lestari, I. (2018). Analysis of the Effect of Economic Growth Rate and Unemployment Rate on Poverty Rate in Kulonprogo, Bantul, Gunung Kidul, Sleman, and Yogyakarta Regencies/Cities. At-Tauzi: Islamic Economic Journal, 18(2), 149–164. http://www.jurnalhamfara.ac.id/index.php/attauzi/article/view/29
Balisacan, A. M., Pernia, E. M., & Asra, A. (2003). Revisiting Growth and Poverty Reduction In Indonesia: What Do Subnational Data Show? Bulletin of Indonesian Economic Studies, 39(3), 329–351. https://doi.org/10.1080/0007491032000142782
BPS. (2018). Official News Statistic. https://www.bps.go.id/
BPS South Sulawesi. (2021). Statistic Official News. (2021). https://www.bps.go.id/website/materi_ind/materiBrsInd-20220117120322.pdf
Case, K. E., & Fair, R. C. (2004). Principles of Economics, Updated Edition. Prentice Hall.
Darma, B. (2021). The Influence of Population on the Economic Growth of Tebo Regency in 2016-2020. Citra Ekonomi, 2(1), 86–92. http://jurnal-citra-ekonomi.com/index.php/jurnalci/article/view/69
Deffrinica, D. (2019). The Effect of Education, Health, Unemployment, and Infrastructure on Poverty in Bengkayang Regency. Management and Sustainable Development Journal, 1(1), 17–25. https://doi.org/10.46229/msdj.v1i1.97
Elviani, E., Militina, T., & Suharto, R. B. (2020). The Effect of Economic Growth and Inflation on Unemployment and Poverty in East Kalimantan. Mulawarman Journal of Economics (JIEM), 3(1). https://journal.feb.unmul.ac.id/index.php/JIEM/article/view/6374
Fajri, A. A., & Iriani, R. (2022). The Effect of Poverty and Unemployment on Economic Growth in Bali Province in 2002-2021. Ekopem: Journal of Development Economics, 7(2), 53–66. http://jurnal.unimor.ac.id/JEP/article/view/2555
Guampe, F. A., Walenta, A. S., & Kawani, F. B. (2022). The Effect of Economic Growth and Open Unemployment on Poverty in Indonesia in 2001-2021. JPEK (Journal of Economic Education and Entrepreneurship), 6(1), 92–102. https://scholar.archive.org/work/5tcodv4p2zeizad2xytoezkiym/access/wayback/http://e-journal.hamzanwadi.ac.id/index.php/jpek/article/download/5536/pdf
Hadiman, A. C. W. (2018). The Effect of Human Capital, Economic Growth and Regional Minimum Wage (Umr) on Unemployment in Makassar City. Universitas Negeri Makassar. http://eprints.unm.ac.id/12076
Hardinandar, F. (2019). Determinants of Poverty (Case Study of 29 Cities/Regencies in Papua Province). Journal of REP (Development Economics Research)), 4(1), 1–12. http://dx.doi.org/10.31002/rep.v4i1.1337
Hilmi, H., Nasir, M., Ramlawati, R., & Peuru, C. D. (2022). The Effect Of Population And Unemployment On The Poverty Rate In Tolitoli District. GROWTH Scientific Journal of Development Economics, 1(1), 20–27. https://stiemmamuju.e-journal.id/GJIEP/article/view/80
Iksan, M., & Arka, S. (2022). The Effect of Wages, Education, and Economic Growth on Employment Opportunities and Poverty in Southern West Java Province. E-Journal of Development Economics, Udayana University, 11(1), 147–175. https://ojs.unud.ac.id/index.php/eep/article/download/51921/43050
Ilham, I. (2019). Analysis of the Effect of Economic Growth, Population and Human Capital on Poverty Levels in the Mamminasata Region. Makassar State University. http://eprints.unm.ac.id/13121/
Kuncoro, M. (2003). Development Economics: Theory, Problems and Policies. Yogyakarta: UPP AMP YKPN.
Kuznets, S., & Murphy, J. T. (1966). Modern economic growth: Rate, structure, and spread (Vol. 2). Yale University Press New Haven.
Lidyanti, A. T., & Hanifa, N. (2022). The Effect of Unemployment Rate and Poverty Rate on Economic Growth in Sidoarjo Regency. Independent: Journal of Economics, 2(1), 16–30. https://ejournal.unesa.ac.id/index.php/independent/article/view/43624
Mankiw, N. G., Taylor, M. P., & Ncwadi, R. (2006). Microeconomics. Thomson.
Muna, D. L. (2022). The Influence of Human Capital, Labor, and Technology on Quality Economic Growth in Central Java This Year 2017-2019. https://doi.org/10.1210/.v3i1.153
Nugroho, R. E. (2017). Analysis of Factors Affecting Economic Growth in Banten Province. JIEMS (Journal of Industrial Engineering and Management Systems), 10(1). http://dx.doi.org/10.30813/jiems.v10i1.37
Prasetya, G. M., & Sumanto, A. (2022). The Effect Of Unemployment And Labor Rates On Poverty Through Economic Growth. PERFORMANCE 19(2). https://journal.feb.unmul.ac.id/index.php/KINERJA/article/view/10956
Prasetyoningrum, A. K., & Sukmawati, U. S. (2018). Analysis of the Effect of Human Development Index (HDI), Economic Growth and Unemployment on Poverty in Indonesia. Equilibrium: Journal of Islamic Economics, 6(2), 217–240. http://dx.doi.org/10.21043/equilibrium.v6i2.3663
Putra, F. P., & Anis, A. (2022). Effect of Economic Growth, Human Development Index, and Government Policy on Poverty in West Sumatra. Journal of Economic and Development Studies, 4(1), 9–18. http://dx.doi.org/10.24036/jkep.v4i1.13302
Saputra, A., Djohan, S., & Roy, J. (2022). The Effect Of Economic Growth And Unemployment Rate On Poverty Rate. Mulawarman Journal of Economics (JIEM), 7(2). https://journal.feb.unmul.ac.id/index.php/JIEM/article/view/10148
Siregar, H. (2006). Improving Economic Structure and Growth: Encouraging Investment and Creating Jobs. Journal of Political Economy And Finance. INDEF. Jakarta. https://ejournal.unsrat.ac.id/index.php/jpekd/article/view/23425
Sukirno, S. (2012). Modern Macroeconomics: The Development of Thought from the Classical and New. Jakarta: Raja Perindo Persada.
Tambunan, T. T. H. (2011). Development Of Micro, Small and Medium Enterprises and Their Constraints: A Story From Indonesia. Gadjah Mada International Journal of Business, 13(1), 21–43. https://scholar.archive.org/work/rsublvap5nfspkstuhcedm2274/access/wayback/https://jurnal.ugm.ac.id/gamaijb/article/download/5492/4464
Todaro, M. P. (1977). Economic Development in the Third World: An introduction to problems and policies in a global perspective. Pearson Education.
Todaro, M. P., & Smith, S. C. (2003). Economic Development: In the Third World, Volume 1.
Viollani, K. A., Siswanto, S., & Suprayitno, E. (2022). The Effect Of Islamic Human Development Index And Economic Growth On Poverty With Unemployment As An Intervening Variable. Fair Value: Scientific Journal of Accounting And Finance, 4(11), 5233–5244. https://doi.org/10.32670/fairvalue.v4i11.1855
Winarto, H., Zumaeroh, Z., & Retnowati, D. (2022). The Effect of Human Capital, Minimum Wage and Labor Force on the Economic Growth of the Manufacturing Industry Sector in Central Java Province. Economics: Journal of Economics and Business, 6(1), 190–194. http://dx.doi.org/10.33087/ekonomis.v6i1.500
Wujarso, R. (2022). Peran Human Capital Dalam Pertumbuhan Ekonomi. Journal of Information System, Applied, Management, Accounting and Research, 6(2), 430–438. https://doi.org/10.52362/jisamar.v6i2.790
Yosephina, R. M., & Murtala, M. (2019). The Influence of Money Supply and Population on Economic Growth in Indonesia. Jurnal Ekonomi Regional Unimal, 2(2), 88–97. https://www.ojs.unimal.ac.id/ekonomi_regional/article/view/1708