ANALYSIS OF THE INFLUENCE OF DEVELOPMENT INEQUALITY AND HUMAN DEVELOPMENT INDEX (HDI) ON NORTH SUMATRAS ECONOMIC GROWTH 2015 - 2020
RAHMANSYAH HARUM NASUTION

Economics,State University of Medan,Jl William Iskandar Ps V Medan postal code 20221, Indonesia

Abstract

Economic growth cannot be separated from economic development because economic development can encourage economic growth, and vice versa. Prolonged economic development from 2015-2020 in North Sumatra Province has in fact provided economic and social development for the community, that is, if economic growth improves, peoples income levels will also increase. However, North Sumatra is a province with 33 regencies and cities with different conditions in the distribution of natural resources and human resources in each district/city. The result is that there are economic development problems, namely the inability to control development inequalities and the human development index. This research was conducted with the aim of knowing the effect of regional development inequality and HDI on Economic Growth in North Sumatra in the 2015-2020 period. Using the type of secondary data observation with a combination of panel data. Data sourced from the official website of BPS North Sumatra. With panel data regression analysis and processed using the E-views 10 program. A suitable method to explain the influence between variables is using REM. The results of the study explain that regional development inequality has a partial and significant positive effect on economic growth. HDI has a positive effect on economic growth partially and significantly. And together, regional development inequality variables and HDI significant influence on economic growth. The results of the determination test explained that regional development inequality and HDI variables had an effect of 91.41% on economic growth between regions of North Sumatra.

Keywords: Regional Development Inequality- HDI- Economic Growth.

Topic: Economics, Business and Management Education