Analysis of the Effects of Banking Credit, Inflation, Government Expenditure, and Absorption of Labor on Economic Growth and Poverty Levels in Indonesia

Abstract

This study aims to analyze the factors that influence economic growth and poverty levels in
Indonesia. The factors analyzed were banking credit, inflation, government expenditure, and
absorption of labor. This research uses path analysis as a data analysis technique to answer
research problems / hypotheses. Research results show that (1) Banking credit towards economic
growth shows significant value, (2) Inflation towards economic growth shows significant value,
(3) Government expenditures on growth shows significant value, (4) Labor absorption on
economic growth shows significant value, (5) Banking credit towards poverty level shows
significant value, (6) Inflation to poverty level shows significant value, (7) Government
expenditures on poverty level shows significant value, (8) Absorption of labor to poverty level shows significant value, ( 9) Economic growth towards the poverty level shows significant value,
(10) Banking credit does not significantly influence the level of poverty through economic
growth, (11) Inflation has a significant effect on the level of poverty through economic growth,
(12) Government expenditure has a significant effect on the level of poverty through economic
growth, (13) Absorption of labor has a significant effect on poverty levels through economic
growth.