Path Analysis of Influence of Economic and Social Factors on the Human Development Index in South Sulawesi in 2022

Abstract

The Human Development Index (HDI) serves as an indicator for assessing socio-economic development in a region. Each area strives to improve its HDI by considering the factors that influence it in that specific region. This research aims to identify the direct and indirect influences of economic and social factors, such as Life Expectancy (LE), Gross Regional Domestic Product per capita (GRDPpc), Labor Force Participation Rate (LFPR) through Average Years of Schooling (AYS) on the HDI in South Sulawesi in 2022. The data used in this study are secondary data obtained from the Central Statistics Agency (BPS) of South Sulawesi Province in 2022. The method applied in this research is a path analysis that examines the relationships between variables, both direct and indirect influences. The research results show that in the equation of sub-structure 1, LE and GRDP per capita ADHB have a direct influence on AYS, while LFPR does not have a direct impact on AYS. The magnitude of the influence of variables in sub-structure 1 is 53%. In the equation of sub-structure 2, LE, GRDP per capita ADHB, LFPR, and AYS have a significant direct impact on HDI. Additionally, LE and GRDP per capita ADHB have an indirect influence through AYS on HDI. The magnitude of the influence of variables in sub-structure 2 is 93.5%. Therefore, the variables that have both direct and indirect effects on HDI through AYS are LE and GRDP per capita ADHB.