Analysis of the Relationship between Human Development Index and Regional Development of West Sulawesi Province

Abstract

This study aims to analyze the relationship between the human development index and the regional development of West Sulawesi Province. This study uses panel data analysis that combines time series-cross section data and uses the Two Stage Least Square (2SLS) method. The type of data in this study is secondary data taken from the Central Statistics Agency (BPS) of West Sulawesi. The variables of the human development index are life expectancy, average length of schooling, expected length of schooling and purchasing power index. While the variables of regional development are poverty, unemployment, regional inequality and GRDP. The results of the analysis using the 2SLS method. In the HDI equation, the PW variable partially has a negative but not significant effect on the HDI for =5%. However, if for =20% PW has a negative and significant effect on HDI. While in the PW equation, the HDI variable partially has a negative but not significant effect on PW for = 5%. The R2 in the HDI equation is 97.5% and the remaining 2.5% which shows that the influence of PW, Life Expectancy, Average Years of Schooling, Expected Years of Schooling, and Purchasing Power Index together have an effect on HDI. While in the PW equation, the determination of R2 is 99.2% and the remaining 0.8% which shows HDI, Poverty Level, Unemployment Rate, Regional Inequality and Gross Regional Domestic Product together affect PW. So, there is a simultaneous relationship between the Human Development Index and Regional Development