The Effect of Education and Dependency Ratio on Economic Growth and Poverty in Papua

ABSTRACT:Poverty is a condition that illustrates the inability to meet basic needs. Until now, poverty inIndonesia is still concentrated in Papua Province. The purpose of this study is to analyze: 1) the direct effect ofeducation and dependency ratio on economic growth; 2) the direct effect of education, dependency ratio andeconomic growth on poverty; 3) the indirect effect of education and dependency ratio on poverty througheconomic growth in the District of Papua Province. This study uses secondary data with 145 observationsconsisting of cross section data of 29 districts and time series data from 2014 until 2018 also conducted in-depthinterviews. The analysis technique used is path analysis. The results showed that: 1) education had a positiveeffect while the dependency ratio had a negative and significant effect on economic growth; 2) education andeconomic growth have a negative effect, while the dependency ratio has a positive and significant effect onpoverty; 3) there is an indirect effect of education on poverty through economic growth, while there is noindirect effect of the dependency ratio on poverty through economic growth in the District of Papua Province.

KEYWORDS : Education, Dependency Ratio, Economic Growth, Poverty