Analysis of The Influence of Education, Health, and Internet User on Economic Growth With Labor Productivity as an Intervening Variable in Indonesia

Abstract

This study aims to see whether the Labor Productivity variable is able
to become an intervening variable between the Education, Health and
Internet Users variable on Indonesia's Economic Growth in the 2015-
2019 period. The method used is Path Analysis using the Eviews
program. The data used is in the form of panels consisting of 34
provinces in Indonesia over a period of 5 (five) years. For model
selection using the Chow Test and Hausman Test and from the two tests
the Fixed Effect Model was selected. For the value of the Education
Variable, the average length of school data is used; the health variable
uses life expectancy data and vaternet uses internet user data. The
results of this study indicate that the Labor Productivity variable is not
an intervening variable between the Education, Health, Internet variable
and the Economic Growth variable as seen from the Sobel Test results
which have a value of less than 1.96 at ð›¼=5%. The direct effect of the
Education variable on Labor Productivity is negative and not
significant. The direct effect of the Health variable on Labor
Productivity is negative and significant. The direct effect of the Internet
variable on Labor Productivity is positive and not significant. The
direct effect of the Education variable on Economic Growth is negative
and significant. The direct effect of the Health variable on Economic
Growth is positive and not significant. The direct effect of Internet
variable on economic growth is positive and significant. The direct
effect of the Labor Productivity variable on Economic Growth is
negative and not significant.