Analysis of Factors That Affect the Rate of Economic Growth and Poverty in the Province of Bali, Indonesia

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Authors

  • Margaretha Loe Student of Postgraduate Program of Faculty of Economics and Business, Udayana University, Bali, Indonesia
  • I Ketut Sudibia Lecturer Faculty of Economics and Business, Udayana University, Bali, Indonesia
July 24, 2018

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Bali Province is one of the provinces in Indonesia whose rapid economic development, but still has poverty problems. The purpose of this study was to analyze the direct and indirect effects of investment, employment, education, and health on poverty through the rate of economic growth in Bali Province. The type of data used in this study is secondary data during the period 2007-2015, while the method of data collection is observation and in-depth interview. Data analysis technique used is descriptive analysis and path analysis. Based on the results of the analysis found that: (1) health has no significant effect on the rate of economic growth in Bali Province. Investments, employment and education have a positive and significant impact on the economic growth rate in Bali Province; (2) employment and health opportunities have no significant effect on poverty in Bali Province. Investment, education and economic growth rates have a negative and significant effect on poverty in Bali Province; (3) the rate of economic growth is a variable of partial mediation in the indirect effect of investment and education on poverty, and the rate of economic growth is a full mediation variable in the indirect effect of employment on poverty, and the rate of economic growth is not mediation or no mediation on health.