Analysis of Oil Palm Plantation Development and Its Implications for Community Welfare in the Eastern Region of North Sumatra, Indonesia

Abstract

This study aims to obtain evidence on the ability of economic growth to moderate the effect of oil palm plantation development (land area, production, farmers, infrastructure, productivity, household expenditure) on the welfare (human development index) of districts in North Sumatra Province. This study covers 8 districts in North Sumatra Province in the 2011-2020 observation period, with secondary data obtained from the ministry of agriculture and the Central Statistics Agency. Data analysis techniques include: classical assumption test, Moderated Regression Analysis, coefficient of determination test, F test, and t test. The result of this study is that economic growth moderates the effect of oil palm plantation development (land area, productivity). Economic growth does not moderate the effects of oil palm plantation development (production, infrastructure. Economic growth increases the impact of oil palm plantation development (farmers) Economic growth increases the influence of oil palm plantation development (household expenses) on the welfare level (human development index) in the Regency/City of North Sumatra Province.