Citation:

Destia Ningsih Wulandari, Zulgani, Erni Achmad. "The Effect of Economic Growth, Indonesian Democratic Index, and Investment Against Unemployment Rate and Poverty Rate in Jambi Province" International Research Journal of Economics and Management Studies, Vol. 3, No. 5, pp. 24-30, 2024.

Abstract:

This study aims to determine and examine the Effect of Economic Growth, Indonesian Democratic Index (IDI) and Investment (PMTB) Against Unemployment Rate and Poverty Rate in Jambi Province. This study aims to determine and examine the effect of Economic Growth, Indonesian Democratic Index and Investment (PMTB) directly on the unemployment rate and its impact on poverty rate both directly and indirectly through the unemployment rate in Jambi Province. Poverty is a common problem in the development process both at the national and regional levels; the poverty that occurs in Jambi Province needs to be investigated as the root cause of the problem, whether related to unemployment stick or other variables such as economic growth and investment. This study is based on the reasons for analyzing the effect of economic growth and investment on unemployment and its impact on poverty in Jambi Province, as well as to test and analyze how much the direct or indirect influence of each independent variable on the dependent variable. The analysis tool used is Quantitative Analysis using Path Analysis (SEM). Path analysis is used to find out how big the influence of economic growth (X1), Indonesian Democratic Index (X2) and investment (X3) on the unemployment rate (Z) and its impact on the poverty rate variable (Y). Based on the analysis, economic growth, the Indonesian Democratic Index, and investment have a significant effect on both the unemployment rate and poverty rate directly, except economic growth has no significant effect on unemployment. Indirectly, three independent variables negatively affect poverty. And in total the three variables have a negative effect on poverty in Jambi Province.

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Keywords:

Economic Growth, Democracy Indonesian Index, Investment, Unemployment Rate and Poverty Rate.