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All Journal Outline Journal of Economic Studies
Laili Hasmiyah Harahap
Universitas Negeri Medan
Economics, Econometrics & Finance Social Sciences

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The Influence of Regional Minimum Wage Levels and Unemployment on Poverty Levels in North Sumatra Province Nur Aulia Pratiwi; Empi Aura Kania; Laili Hasmiyah Harahap
Outline Journal of Economic Studies Vol. 5 No. 1: October - March 2026
Publisher : Outline Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61730/j9wv2p28

Abstract

Purpose: This study examines the effects of the Regional Minimum Wage (UMR) and unemployment on the poverty rate in North Sumatra, both partially and simultaneously. Methods: A quantitative approach was employed using secondary data obtained from the Central Bureau of Statistics (BPS) of North Sumatra Province. Data were analyzed using multiple linear regression with the Ordinary Least Squares (OLS) method. Classical assumption tests—normality, multicollinearity, heteroskedasticity, and autocorrelation—were conducted to ensure model validity. Results: The results indicate that the regression model meets all classical assumptions. The multiple regression analysis shows that the Regional Minimum Wage (UMR) significantly affects the poverty rate in North Sumatra (p < 0.05). Unemployment also has a significant effect on poverty levels (p < 0.05). Simultaneously, UMR and unemployment significantly influence the poverty rate (p < 0.05). The coefficient of determination reveals that both variables explain 82.38% of the variation in the poverty rate. Conclusions: The study concludes that wage levels and unemployment are key determinants of poverty in North Sumatra. Therefore, labor market policies and minimum wage regulations play an important role in poverty reduction. Originality/value: This study provides region-specific empirical evidence on the relationship between minimum wage, unemployment, and poverty in North Sumatra, offering valuable insights for policymakers in formulating targeted poverty alleviation strategies.
The Effect of Exports and Investment on Economic Growth in North Sumatra Khairani Matondang; Revita Yuni; Nur Aulia Pratiwi; Laili Hasmiyah Harahap
Outline Journal of Economic Studies Vol. 5 No. 1: October - March 2026
Publisher : Outline Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61730/j774qq55

Abstract

Purpose: This study aims to determine and analyze the effect of exports and investment on economic growth in North Sumatra Province. Methods: This research uses secondary data obtained from the Central Bureau of Statistics (BPS) of North Sumatra Province for the 2001–2020 period. The analysis examines the relationship between exports and investment as independent variables and economic growth as the dependent variable, measured by Gross Regional Domestic Product (GRDP). Results: The results show that exports have a positive and significant effect on economic growth in North Sumatra Province. Investment also has a positive and significant effect on economic growth. Simultaneously, exports and investment significantly influence economic growth. The findings further indicate that exports and investment contribute 94% to economic growth in the province. Conclusion: Exports and investment play an important role in supporting economic growth in North Sumatra Province. Increasing export performance and investment levels can significantly enhance regional economic development. Originality/value: This study provides empirical evidence of the strong contribution of exports and investment to economic growth in North Sumatra Province using a 20-year observation period, highlighting their dominant role in regional economic development.
Co-Authors Empi Aura Kania Khairani Matondang Nur Aulia Pratiwi Revita Yuni