DEVELOPMENT OF THE ECONOMIC GROWTH MODEL REDUCING POVERTY IN CENTRAL JAVA INDONESIA

Abstract

Purpose: Research purposes of analyzing the Human Development Index open unemployment rate to Poverty with intervening variables of economic development in Central Java Province in 2015-2020. Theoretical framework: Human Development measures human development achievements based on a number of basic components of quality of life. Unemployment is a macroeconomic problem that directly affects human survival. Poverty is the inability to meet the minimum standard of living, where the measurement of poverty is based on consumption. The major theory used relates to the Neo-liberal and Social Democracy paradigms. Economic growth has a correlation with the number of poor people, where high economic growth will have an impact on reducing the number of poor people, with the assumption that economic growth is pro-poor. Design/methodology/approach: This research uses a quantitative approach. The analysis uses the website's secondary data published by the Central Statistics Agency. The number of data is 210, processed using AMOS to determine the direct and indirect effects and a Sobel calculator to assess the impact of the intervening variables. Findings: The results showed that the Human Development Index did not significantly impact Economic Growth, the Open Unemployment Rate substantially influenced Economic Growth, and the Human Development Index significantly affected Poverty. Open Unemployment Rate has no significant impact on Poverty. Economic growth has no significant effect on Poverty. The Growth of Economic can not mediate impact human development index on Poverty. Economic growth can not mediate result of the open unemployment rate to Poverty Research, Practical & Social implications: the research can be carried out in different places with a broader objective. Provincial or district/city governments in Central Java Province as policy material and or policy projections in the future Originality/value: The findings of this study can be generalized to different provinces so that they can be used as material for government policies to increase the human development index, reduce unemployment, increase economic growth so that poverty will decrease.