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Analysis of the Influence of the Amount of Labor, Level of Education and Government Spending on Economic Growth in North Sumatera

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Analysis of the Influence of the Amount of Labor, Level of Education and Government Spending on Economic Growth in North Sumatera International Journal of Research and Review DOI: https://doi.org/10.52403/ijrr.20210428 Vol.8; Issue: 4; April 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 Analysis of the Influence of the Amount of Labor, Level of Education and Government Spending on Economic Growth in North Sumatera Janita Sari1, Irsad2, Rahmanta3 1Postgraduate, Students Faculty of Economics and Business, Department of Economics, Universitas North Sumatra, Indonesia 2,3Postgraduate, Lecturer Faculty of Economics and Business, Department of Economics, Universitas North Sumatra, Indonesia Corresponding Author: Janita Sari ABSTRACT continuously toward a better state for a certain period (Hashim, 2017: 11). This study was to analyze the effect of labor, Economic growth is an important levels of education and government spending on factor in development, the successful the education sector on economic growth in development of a country or region is North Sumatra. The data used is secondary data measured based on the high and low rates of obtained from the Regional Financial and Asset Management Agency of North Sumatra and the economic growth achieved. Measurement of Central Statistics Agency of North Sumatra economic growth is conventionally usually Province, which consists of 33 districts / cities by calculating the increase in the percentage in several publications from 2015–2019. The of Gross Domestic Product to national and research method used is panel data with a Fixed Regional Gross Domestic Product for the Effect Model approach. The results of this study provincial and district/city. Gross Regional indicate that labor has a negative and Domestic product is the sum of value added insignificant effect on economic growth, the generated by all business units in a level of education has a significant positive particular region or is the amount of the effect on economic growth and government value of final goods and services produced spending in the education sector has a by all economic units during a certain significant positive effect on economic growth in North Sumatra in 2015-2019. period. Therefore, the economic growth of a region can be obtained through the growth Keywords: Economic Growth, Labor, Education rate of the Gross Regional Domestic Level and Government Expenditure. Product at constant prices. Economic growth as the development of activities in INTRODUCTION the economy that cause the goods and Economic development is needed by services produced in a society grow and the a country to improve the lives and welfare prosperity of society increased. So of the community, by developing all areas economic growth to measure the of activity in a country. In order to improve achievements of the development of an the welfare of the community it is necessary economy from one period to the other increased economic growth and income (Sukirno in Suindyah, 2011: 120). distribution is uneven. Economic growth Advance whether a country can be can be defined as the process of changes in seen from the growth of its economy. economic conditions of a country Countries with good growth can indirectly indicate the progress of the country, but International Journal of Research and Review (ijrrjournal.com) 211 Vol.8; Issue: 4; April 2021 Janita Sari et.al. Analysis of the influence of the amount of labor, level of education and government spending on economic growth in North Sumatera. increase the economic growth of a country These differences become an is not an easy thing, many of the factors that obstacle in the distribution of economic affect the rate of growth of a country. So an development because economic growth is economy is said to experience economic only concentrated on an economic activity growth if the amount of production of goods that is increased in some provinces or and services in a given year is greater than regions that have abundant natural in the previous year (Rusdi and Haerati, resources. The natural wealth that should 2015 : 2). dapatmenjadikan added value in improving Economic growth in each country is economic development in the Province of different, therefore, economic growth is not North Sumatra. the only concern and the agenda of the Based on the 33 districts/cities in central government but also to the attention North Sumatra for 2015 economic growth of of the agenda and each region in a country. the Coal District is located on the lowest This is because the economic growth of a level, namely 4,11%, while the District lines country is also affected by economic growth are Mandailing Natal by 6,22%. 2016 in each region. Included in the Province of Distric Tapanuli Utara is located on the North Sumatra which is composed of 33 lowest level, namely were 4.12% and the Districts/Cities that have a background Terrain into Districts/city with the highest differences between regions. The difference economic growth of 6,27%. 2017 economic is in the form of differences in the growth of the Coal back into the District the characteristics of the natural, social, lowest is 4,11%, and Mandailing Natal economic, and natural resources that its Regency becomes the highest 6,09%. 2018 spread is different. North Tapanuli Regency is located on the lowest level, namely 4.35 percent, and Table 1.1 Economic Growth On The Basis Of Constant Prices North Sumatra Tahun 2015-2019 (Percent) Gunung Sitoli District the highest 6,03%. District/City 2015 2016 2017 2018 2019 For the year 2019 again the Coal Districts of Nias 5.43 5.03 5.01 4.95 5.04 Mandailing Natal 6.22 6.18 6.09 5.79 5.30 the low of 4.35 percent, and the Tapanuli Selatan 5.02 5.12 5.21 5.19 5.23 Gunungsitoli Sitoli back be the District with Tapanuli Tengah 5.08 5.12 5.24 5.20 5.18 Tapanuli Utara 4.81 4.12 4.15 4.35 4.62 the highest economic growth that is equal Toba Samosir 4.55 4.76 4.90 4.96 4.88 6,05%. Labuhan Batu 5.04 5.06 5.00 5.06 5.07 In 2015 economic growth of 5.10% Asahan 5.57 5.62 5.48 5.61 5.64 Simalungun 5.24 5.40 5.13 5.18 5.20 is, the year 2016 is slightly increased from Dairi 5.04 5.07 4.93 5.01 4.82 the year previous 5,18%, but the year 2017 Karo 5.01 5.17 5.21 4.55 4.60 Deli Serdang 5.25 5.32 5.10 5.15 5.18 economic growth in North Sumatra Langkat 5.03 4.98 5.05 5.02 5.07 experienced a slowdown to the 5.12%, and Nias Selatan 4.46 4.41 4.56 5.02 5.03 Humbang Hasundutan 5.24 5.00 5.02 5.04 4.94 then increased slightly in 2018 by 5.18% on Pakpak Bharat 5.93 5.97 5.94 5.85 5.87 the value, up to the year 2019 increased Samosir 5.77 5.27 5.35 5.58 5.7 again be 5,22%. The category of agriculture, Serdang Bedagai 5.05 5.14 5.16 5.17 5.28 Batu Bara 4.11 4.44 4.11 4.38 4.35 forestry and fisheries experienced the Padang Lawas Utara 5.94 5.96 5.54 5.58 5.61 highest growth amounting to 24,79% Padang Lawas 5.74 6.06 5.71 5.96 5.64 Labuhanbatu Selatan 5.13 5.19 5.09 5.27 5.35 followed by category of industry processing Labuanbatu Utara 5.18 5.21 5.11 5.2 5.15 of 18,08% and the category of trade and Nias Utara 5.49 4.59 4.43 4.42 4.65 Nias Barat 4.87 4.83 4.81 4.77 4.82 retail, repair of cars, and motorcycles by Sibolga 5.65 5.15 5.27 5.25 5.2 17,97% (BPS, 2020 : 898). Tanjungbalai 5.58 5.76 5.51 5.77 5.79 The economy of North Sumatra in Pematangsiantar 5.24 4.86 4.41 4.8 4.82 Tebing Tinggi 4.86 5.11 5.14 5.17 5.15 the year 2017 decreased from 5,18% to at Medan 5.74 6.27 5.81 5.92 5.93 5.12%. According to data from Bank Binjai 5.4 5.54 5.39 5.46 5.51 Padangsidimpuan 5.04 5.29 5.32 5.45 5.51 Indonesia, the decline is mainly caused by Gunung Sitoli 5.39 6.03 6.01 6.03 6.05 household consumption, which tends to Source: BPS Province North Sumatra slow down, as economic conditions have International Journal of Research and Review (ijrrjournal.com) 212 Vol.8; Issue: 4; April 2021 Janita Sari et.al. Analysis of the influence of the amount of labor, level of education and government spending on economic growth in North Sumatera. not yet fully recovered household Since the year 2015-2019 labor force in consumers tend to allocate the increase in North Sumatra, most of the educated high income for the motif just in case. The source School/equivalent percentage of this group of the income is indicated as allocated in the reached the highest level for 4 years. The form of savings and deposits, which is second highest is the Junior high school and reflected in the amount of third party funds the highest order of the third is the SD while that is increasing, while it is sectoral, to the category of Diploma I/II/III/IV and slowing Gross Domestic Product 2017 is the University are at the lowest level each also caused by the performance of the year during 2015-2019.
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