Title : THE EFFECT OF INVESTMENT AND GRDP AND LABOR ABSORPTION ON THE NUMBER OF POOR POPULATION IN DISTRICTS AND CITIES IN EAST JAVA
Author : AGUS BUDI PURNOMO
Universitas Airlangga
Item Type : Thesis (Thesis)
Abstract
East Java is one of the provinces with good economic performance: high economic growth accompanied by increased investment, labor absorption, and poverty reduction. However, the poverty rate in East Java remains relatively high. During 2009-2013, the percentage of poor people in East Java was always above the national level. Based on this background, this study aims to examine and analyze the influence of investment, Gross Regional Domestic Product (GRDP), and labor absorption on the number of poor people in regencies and cities in East Java in 2009-2013 using the path analysis method. This method was chosen because it is able to explain the direct and indirect effects between independent variables and between independent variables and the dependent variable based on models built from theory and previous research. The results of the study indicate that investment directly has a positive effect on GRDP and labor absorption. While GRDP directly has a negative effect on the number of poor people, and labor absorption directly has a positive effect on the number of poor people. So, investment indirectly has a negative effect on the number of poor people through GRDP, and investment indirectly has a positive effect on the number of poor people through labor absorption.
Keywords: Path analysis, investment, poverty