The Effect of Education Level and Poverty on Economic Growth in Serdang Bedagai Regency

Economic growth as a process of increasing output over time is an important indicator to measure the success of a country’s development. Economic growth is only influenced by the stock of capital, labor and technology which are exogenous in nature. Economic growth is one indicator of the success of development in an economy. The welfare and progress of an economy is determined by the amount of growth indicated by changes in national output. The existence of a change in output in the economy is a short-term economic analysis. This study aims to analyze how much influence the level of education and poverty has on economic growth in Serdang Bedagai Regency. In measuring and analyzing, time series data were used in the 2008-2019 period. The analysis model used in this study refers to the basic model of multiple linear regression equations with the Engle-Granger Error Correction Model (ECM-EG) method in estimating the short-term relationship between the education level variables, the number of poor people on economic growth. The partial test results can be seen in the estimation obtained through the t test with a significant level α = 5 percent. In the short term, the t-statistic and probability for the education level variable t-stat = 0.500677 (prob = 0.6320) indicates that the education level variable has a negative and insignificant effect on economic growth. In the short run, the variable number of poor people with t-stat = 0.668084 and prob = 0. The magnitude of this influence is indicated by the coefficient value of the independent variables, namely: 0.482455 for the economic growth variable, -0.000288 for the human development index variable, 0.091716 for the open unemployment rate variable.