DEPENDENCY RATIO, HUMAN DEVELOPMENT INDEX (HDI) ON ECONOMIC GROWTH IN INDONESIA THROUGH SAVINGS

Abstract

This research aims to see the influence of the exogenous variables (dependency ratio and human development index) on the endogenous variable of economic growth through savings (intervening variable). The research method used is a quantitative method, the data used in this research is secondary data in the form of time series data 2004- 2023 (20 years) in the Indonesian consists of data on dependency ratio, human development index, saving and economic growth. The data collection method was carried out using online searches on the websites of the Central Statistics Agency (BPS), Bapenas and Bank Indonesia. The data analysis technique in this research uses a path analysis model with the help of SPSS version 22 software to determine the effect of the dependency ratio and development index on economic growth both directly and indirectly through savings. Based on the statistical output, it was found that: (1) Dependency ratio has a significant negative effect on savings, (2) human development index has a significant positive effect on savings, (3) Dependency ratio has no significant effect on economic growth, (4) Human Development index has no significant effect on economic growth (5) savings have no significant effect on economic growth, (6) Dependency ratio has a significant positive effect on economic growth through savings, (7) Human development index has significant effect on economic growth through savings.