Analysis of Factors That Affecting to Human Development Index in North Sumatra

Abstract

This research is to determine human development index in North Sumatra. The research used quantitative method and the data consisted of secondary data obtained directly from Statistics of North Sumatra. The research objects were 33 districts/towns in North Sumatra. This study uses secondary data obtained directly from Statistics of North Sumatra. The research used panel data, the combination of time series and cross section data within 6 years, from 2014 until 2019. Variables used are Economic Growth, Poverty and Direct Expenditure per Capita. Analysis method in this research using Fixed Effect Model (FEM) using Eviews 10 as an estimation tool. The results showed that Economic Growth has a significant negative effect on Human Development Index, Poverty has a significant negative on Human Development Index and Direct Expenditure per Capita has a significant positif on Human Development Index. Then the relationship between Economic Growth, Poverty and Direct Expenditure per Capita with Human Development Index 97,70% and 2,30% other explained by other factors not mentioned in this model. Keywords: Human Development Index, Economic Growth, Poverty, Direct Expenditure per Capita.