Napitupulu, Sungguli
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INVESTIGATING THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND HUMAN DEVELOPMENT INDEX: ARE THEY SIMULTANEOUSLY RELATED ? Nababan, Tongam Sihol; Panjaitan, Raya; Panjaitan, Ferry; Napitupulu, Sungguli
SULTANIST: Jurnal Manajemen dan Keuangan Vol. 12 No. 2 (2024)
Publisher : Sekolah Tinggi Ilmu Ekonomi Sultan Agung Pematangsiantar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37403/sultanist.v12i2.653

Abstract

This study aims to investigate and prove whether economic growth and the human development index, each of which is influenced by its determinants, have a simultaneous relationship. The data used is secondary data in the form of panel data from North Sumatra Province consisting of 29 districts / cities for the period 2018 - 2022. The analysis method used is simultaneous equation with two stages least square. The study results show that the variables that have a positive and significant effect on economic growth are the output value variable of large and medium industries and the labor force participation rate variable, while the employment opportunity variable has a negative and significant effect on economic growth. The variables that have a positive and significant effect on the human development index variable are the per capita income variable and the life expectancy variable. However, the economic growth variable has a negative and significant effect on the human development index. By using two stages least square analysis, it is found that economic growth does not have a simultaneous relationship with the human development index variable.