IDENTIFY SEVERAL VARIABLES THAT INFLUENCE THE WELFARE OF THE POPULATION OF INDONESIA


Muhammad Saleh Mire
Mulawarman University, Indonesia
Abstract
This study aims to determine and examine the influence of road infrastructure, wages, GDP per capita, and MSMEs on the level of population welfare (human development index) through GDP per capita and economic growth using panel data in 34 provinces in Indonesia during 2017-2022. This research uses a path analysis model with dummy variables by grouping the system into 2 parts, namely areas with a natural resource base, called Group 1, and non-SDA-based areas, called Group 2. The results of the study show that road infrastructure has a significant negative influence on the level of welfare. both in Group 1 and Group 2. This variable also has a significant negative effect on GDP per capita in Group 2, but it is not significant in Group 1. Furthermore, this variable has no influence on economic growth in either Group 1 or Group 2. Wages in Group 1 have a real positive effect on GDP per capita and HDI (welfare). On the other hand, Group 2 had no influence on these two variables. Furthermore, MSMEs in group 1 have a very real influence on GDP per capita and HDI, but have no influence on economic growth. On the other hand, in group 2 MSMEs have no influence on GDP per capita and economic growth, but have a significant positive influence on HDI. Finally, economic growth has a real positive influence on HDI in Group 1, whereas it has no influence in Group 2.
Keywords: Road Infrastructure, MSMEs, Wages, Economic Growth, GDP per capita and HDI
Journal Name :
EPRA International Journal of Multidisciplinary Research (IJMR)

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Published on : 2024-06-02

Vol : 10
Issue : 5
Month : May
Year : 2024
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