Analysis of the Influence of Labor Force and Human Development Index on Economic Growth in Aceh Province

Rahmasari Rahmasari; Yuliana Yuliana; Isthafan Najmi; Yulfrita Adamy

doi:10.30601/humaniora.v10i1.7305

Analysis of the Influence of Labor Force and Human Development Index on Economic Growth in Aceh Province

Rahmasari Rahmasari, Yuliana Yuliana, Isthafan Najmi, Yulfrita Adamy

Abstract

This study aims to analyze the influence of the Labor Force and Human Development Index (HDI) on Economic Growth in Aceh Province. The research method used is quantitative with a multiple linear regression approach, using time series data from 2017-2024. Panel data from 23 districts/cities from the Statistics Indonesia (BPS) of Aceh Province was used. EViews 13 was used, with the Common Effect Model approach, selected based on the results of the Chow and Lagrange Multiplier tests. The analysis results indicate that the Labor Force and HDI simultaneously have a significant influence on Economic Growth in Aceh Province. The regression model indicates that these two independent variables can explain most of the variation in Economic Growth. The coefficient of determination (R-square) value of 0.619226 indicates that 61.92% of the variation in Economic Growth can be explained by the Labor Force and HDI. Partially, the increase in the Labor Force shows a strong positive relationship, confirming the role of labor availability as a primary driver of production.

Keywords

Labor Force; Human Development Index; Economic Growth; Aceh Province

Full Text:

PDF

References

A. Mulyasari, “the effect of Human Development Index and labor force on Gross Regional Domestic Product” " J. Ekon. Developer., vol. 5, no. 4, pp. 368–376, 2016.

Y. Eliza “ "the effect of Investment, Labor Force and government spending on economic growth in West Sumatra”" J. Ekon. Developer., pp. 200–210, 2015.

M. B. Setiawan and A. Hakim, "Indonesia Human Development Index," J. Ekon. and the builder., pp. 18–26, 2013.

Rindiyani and A. Mubaraq “ "analysis of the effect of Human Development Index on economic growth in West Kalimantan province”" J. Ekon. Reg., 2023.

D. Isthafan Najmi, “Jurnal Ekonomi dan Pembangunan Indonesia Belanja Pemerintah , FDI , Pertumbuhan Ekonomi , Pertumbuhan Government Spending , FDI , Economic Growth , Industrial Growth , and Poverty Pendahuluan,” vol. 24, no. 2, 2024, doi: 10.21002/jepi.2024.11.

Firdani, Saptana, and A. Prasetyo “ "the effect of labor force participation rate, inflation, and investment on economic growth in Indonesia," J. Ekon. and wisdom., vol. 17, no. 2, pp. 145–158, 2024.

S. Sukirno, Macroeconomic Theory Introduction, Third Edition. Jakarta: Rajawali Press, 2016.

United Nations Development Programme, “Human Development Report 2022,” 2022, New York.

m. P. Todaro and S. C. Smith, Economic Development, 12th Edition. Boston: Pearson Education, 2015.

S. Nadilla and Ichsan “ "the effect of inflation, labor force participation rate, and exports on economic growth in Indonesia”" J. Ekon. Developer., vol. 8, no. 1, pp. 23–35, 2023.

A. Locke, R. Siregar, and M. Putri “ "the influence of labor force, investment, and poverty on economic growth in Indonesia," J. Monet., vol. 12, no. 1, pp. 1–14, 2025.

Prihatini, “analysis of the influence of Human Development Index and the labor force on the economic growth of Jambi city,” J. Ekon. and Stud. Developer., vol. 26, no. 1, pp. 45–56, 2025.

Yuan, Azizah, and Annisa, “the effect of Human Development Index, Regional Minimum wage, and population growth on economic growth in West Nusa Tenggara province,” J. Ekon. and Mod business., vol. 5, no. 2, pp. 88–99, 2025.

Regina, Suharianto, Febyanti, Salifah, and Azzahraini, “the effect of Human Development Index and labor force on economic growth in North Sumatra,” Trending J. Ekon. Developer., vol. 3, no. 1, pp. 15–26, 2025.

Rahmawati, Izzati, and Luthfiyyah, “the effect of labor force participation rate and Human Development Index on unemployment,” J. Ekon. Reg., vol. 6, no. 1, pp. 55–66, 2025.

Efendi, Nasution, Rusiadi, and Pratiwi, “The Impact of Human Development Index and Industrial Labor on Economic Growth in North Sumatra Province,” J. Science Adm. and Ekon., vol. 7, no. 1, pp. 33–44, 2025.

A. Y. The Salsa, N. Imanigsih, and R. S. Wijaya “ "The Effect Of Population, Unemployment And Education Level On Economic Growth In The Region Of Gerbang Kertosusila," J. Ekon. Developer. STIE Muhammadiyah Palopo, vol. 7, no. 1, pp. 35–45, 2021.

A. Putra and D. Sari “ "determinants of poverty in Indonesia: A Panel Data approach”" J. Ekon. and the builder. Indonesia., vol. 21, no. 1, pp. 1–15, 2021.

Z. A. Yuliana Rachmawati Sutrisno, "Journal Of Economic Sciences," J. Econ Science. Apply., vol. 1, no. 2, pp. 88–104, 2023.

A. B. Susanto and L. Rachmawati “ "the effect of Human Development Index (HDI) and inflation on economic growth in Lamongan," J. Ekon. Developer., 2011.

DOI: https://doi.org/10.30601/humaniora.v10i1.7305

Refbacks

There are currently no refbacks.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.