Abstract

This study aims to determine the level of high school education (SMU) and Higher Education (PT) on the Economy of North Sumatra and to identify the effect of the level of education on the economy in North Sumatra. This type of research is a descriptive study, while the approach used is a quantitative approach with a sample of GRDP data and the Labor Force over 15 years with high school education levels (SMU) and Higher Education (PT) from 20002017. The type of data used is secondary data obtained from the Central Statistics Agency. The analysis technique used is the multiple linear regression analysis (OLS) method. The results of this study indicate that partially the level of high school education (SMA) has a positive and not significant effect on the Economy of North Sumatra and the level of education of the University (PT) has a positive and significant effect on the Economy of North Sumatra while simultaneously the level of high school education (SMU) and Higher Education (PT) has a positive and significant impact on the Economy of North Sumatra.

Highlights

  • One indicator of the success of regional economic development is the occurrence of economic growth where an increase in community income

  • The results of this study indicate that partially the level of high school education (SMA) has a positive and not significant effect on the Economy of North Sumatra and the level of education of the University (PT) has a positive and significant effect on the Economy of North Sumatra while simultaneously the level of high school education (SMU) and Higher Education (PT) has a positive and significant impact on the Economy of North Sumatra

  • Hypothesis Test Results Hypothesis testing aims to determine the effect of the level of high school education (SMK) and Higher Education on the Economy in North Sumatra

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Summary

Introduction

One indicator of the success of regional economic development is the occurrence of economic growth where an increase in community income. Economic growth shows the extent to which economic activity can generate additional income or welfare for the community in a certain period. Economic growth can be interpreted as a fiscal development in the production of 2 goods and services that apply in a country (Sukirno, 2008). According to Sukirno (2006), economic growth is defined as the development of activities in the economy that causes goods and services produced in the community to increase and the prosperity of the community to increase. From one period to another the ability of a country to produce goods and services will increase This increased capability is due to the increase in production factors both in quantity and quality. One of them is a factor human resources (HR) that can compete with overseas human resources in the future

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