The Contribution of the Industrial Sector to Economic Growth
The Mediating Role of the Human Development Index (HDI) in Indonesia
DOI:
https://doi.org/10.32923/1bntam76Keywords:
MSDM (Manajemen Sumber Daya Manusia) , IPM (Indeks Pembangunan Manusia), Industrialisasi, GNP (Gross National Product), PDRB (Pendapatan Domestik Regional Bruto)Abstract
The present study utilizes data from 34 provinces in Indonesia for the period 2020–2024, sourced from Statistics Indonesia (BPS), the Ministry of Finance, and the United Nations Development Programme (UNDP). The provincial level constitutes the primary analytical unit, enabling a comprehensive assessment of regional dynamics across Indonesia. This research is motivated by the growing importance of strengthening future human resources with global competitiveness, and the examined programs are relevant for advancing such capacities while supporting the Sustainable Development Goals (SDGs). The objective of the analysis is to measure and evaluate the relationship between the dependent variable—such as economic growth—and a set of independent variables, including regional expenditure, local own-source revenue, and other regional economic indicators.The Structural Equation Modeling–Partial Least Squares (SEM-PLS) results reveal that macroeconomic variables exert a positive and significant influence on Gross Regional Domestic Product (GRDP) (β = 0.543; p < 0.001). This finding underscores the critical role of large-scale economic activities—such as the manufacturing sector and government fiscal policies—in fostering regional economic growth. Expansion in macroeconomic sectors generates substantial multiplier effects through employment creation, enhancement of innovative human capital, increased investment, and higher production output.
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