Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 269-280
Analysis on the Influence of Investment, Labor and Economic Growth on Poverty in Indonesia
Monicaria Tarigan1, Rujiman2, Ahmad Albar Tanjung3
1Posgraduate Students Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia
Corresponding Author: Monicaria Tarigan
ABSTRACT
The objective of this research is to analyze the influence of investment (PMDN and PMA), the number of workers and economic growth & its impact on poverty in Indonesia. The data used by the authors in this study is the secondary data type time series from 1990 to 2019 obtained from the Central Bureau of Statistics. The method used in this study is Vector Autoregression (VAR). The analysis showed that the investment has a negative but is minor effect on poverty as well as the labor force which give negative effect to poverty. Economic growth has a positive effect on poverty in Indonesia. Therefore, the government should not only pursue high economic growth alone but more than economic growth must be qualified and equtable growth that can be felt by the whole society. The realization of investment that is right on target, especially in poor areas, is able to reduce the level of poverty in Indonesia.
Keywords: Investments, Labor, Economic Growth, Poverty, Vector Autoregression (VAR).
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