The Influence of Poverty, Unemployment and Government Expenditures on the Human Development Index (HDI)

Wardatul Wahidah Rahman; Abdul Wahab; Laelani Rukmani; Yusri Karmila

doi:10.31958/imara.v8i1.12226

The Influence of Poverty, Unemployment and Government Expenditures on the Human Development Index (HDI)

Wardatul Wahidah Rahman, Abdul Wahab, Laelani Rukmani, Yusri Karmila

Abstract

Background : As a developing country, the government has an important role in accelerating economic development. Various policies are implemented to achieve economic development goals. Fiscal policy is an economic policy carried out by the government regarding revenues and expenditures to achieve goals such as economic growth and general economic stability.

Purpose : This researcher examines the influence of poverty, unemployment and government spending on the Human Development Index (HDI)

Method : This type of research is quantitative research. This research used 12 provinces in Indonesia. The research period covers 2010-2020, the method applied in this research is panel data, using secondary data and this research software uses eviews 10

Result : The research results show that: (1) poverty has a significant negative effect (0.0000) on the human development index (HDI), (2) poverty has a significant negative effect (0.0000), (3) government spending has a significant positive effect (0.0000 ) on the human development index.

Conclusion : This research shows that the poverty variable has a significant negative effect on the human development index. Furthermore, the unemployment variable also has a significant negative effect on the human development index. Meanwhile, the last variable, namely government spending, has a significant positive effect on the human development index. The coefficient of determination (R2) explains the variables of poverty, unemployment and government spending which can explain variations in the human development index (HDI) variable of 91.3%. Meanwhile, the rest is explained by other variables outside this research.

Keywords

Government spending, Human Development index (HDI), Poverty, Unemployment

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DOI: http://dx.doi.org/10.31958/imara.v8i1.12226