Does Human Development Index (HDI), Investment, and Unemployment Effects on Economic Growth and Poverty Levels? (A Case Study in Bali)

ABSTRACT: The purpose of this study is to (1) Analyze the effect of the human development index (HDI),investment, and the unemployment rate on economic growth in regencies/cities in Bali Province, (2) Analyzethe effects of the human development index (HDI), investment, unemployment rate, and economic growth onthe poverty level of districts/cities in Bali Province, and (3) Analyzing the role of economic growth in mediatingthe effect of the human development index (HDI), investment, and the unemployment rate on the poverty levelof districts/cities in Bali Province.This research is a quantitative study using panel data of 45 observations. Thetype of data used in this research is quantitative data and qualitative data. The data source in this study issecondary data which comes from the Central Statistics Agency (BPS). The method of analysis used in thisresearch is path analysis. Based on the results of the analysis, it shows that (1) Human development index (HDI)and investment have a positive and significant effect on the economic growth of regencies/cities in BaliProvince, while the unemployment rate has a negative and significant effect on economic growth inregencies/cities in Bali Province. (2) The human development index (HDI) and investment have a negative andsignificant effect on the poverty level of districts/cities in Bali Province. The unemployment rate has a positiveand significant effect on the poverty level of districts/cities in Bali Province, while economic growth has anegative and significant effect on the poverty levels of districts/cities in Bali Province. (3) Economic growthmediates the effect of the human development index (HDI), investment, and the unemployment rate on thepoverty level of districts/cities in Bali Province.

Keywords: Poverty, Economic Growth, Human Development Index (HDI), Investment, Unemployment Rate