Path Analysis: Relationship Between Regional Government Capital Expenditures, Human Development Index And Labor Absorption On Poverty And Economic Growth In Palopo City

Abstract

This research aims to determine the relationship between regional government capital expenditure, human development index, labor absorption on poverty and economic growth in Palopo City. This research uses secondary data obtained from the Palopo City Central Statistics Agency. There are regional government capital expenditures, human development index and labor absorption as exogenous variables, while poverty levels and economic growth are endogenous variables. This research uses panel data which combines time series and cross section data. The tool used is quantitative analysis using path analysis. The research results show that all hypotheses are accepted. Hypothesis 1 states that regional government capital expenditure has a significant positive effect on economic growth. Hypothesis 2 states that the Human Development Index has a positive and significant effect on economic growth. Hypothesis 3 states that labor absorption has a positive and significant effect on economic growth. Hypothesis 4 states that economic growth has no significant effect on poverty. Hypothesis 5 shows that the Human Development Index is significantly negative on poverty.