Influence of Government Investment and Private Investment to Economic Growth, Manpower Absorption and Amount of Poor Population in Regencies/Cities in South Kalimantan Province in 2002-2012

Abstract

This study aimed to determine the effect of the level of independence of local economic growth and employment as well as social welfare regencies/cities in South Kalimantan.

Data collected in this study is a secondary data using the panel (Pooled data). The unit of analysis covers 13 districts / cities as South Kalimantan, with time series for 2007-2011. These data were analyzed using Analysis of Path (Path Analysis).

The results showed that: the level of local autonomy no significant effect on economic growth regency / municipal in South Kalimantan, with p-value 0,080>0,05, no significant effect on employment, wih p-value 0,541>0,05 but no significant effect on the welfare of the district/municipal in South Kalimantan, with p-value 0,893>0,05..

The results of this study showed that: economic growth significantly influence people's welfare, with p-value 0,003<0,05, significant effect on employment is also district / municipal South Kalimantan, with p-value 0,042<0,05. Then the results of this study indicate that employment significantly influence public welfare district/municipal in South Kalimantan, with p-value 0,021<0,05.

Therefore, the government district / municipal South Kalimantan Province needs to increase potential resources contained in the area, so increasing the level of local independence. Along with the increasing independence of the region, economic growth will also increase, so that employment also increased, and eventually the society’s welfare will increase.

Keywords : Financial independence, economic growth, employment, and  welfare.