HOW TO INCREASE ECONOMIC DEVELOPMENT WITH THE ROLE OF HUMANS AND PROSPEROUS FAMILIES: A STUDY OF EAST KALIMANTAN PROVINCE
Abstract
A prosperous economy brings harmony to economic development. This study aims to determine the
mediating role of human development and prosperous families on the external environment and
economic development in East Kalimantan, Indonesia. Quantitative panel data from the Central Statistics
Agency of East Kalimantan Province includes 117 data on six districts and three cities during the period
2007 to 2019, with an equation structure model (SEM) through the software WarpPLS. The direct influence
between exogenous variables on the mediator variable found a positive or negative and significant
influence of poverty, education, population and labor on human development and performance.
Meanwhile, the direct influence of the exogenous variables on Economic Development was found to
have positive and negative effects, both significant and insignificant. It was also found that the influence
of the Human Development mediator variable on the endogenous variable of Economic Development
was positive and significant. In contrast, the effect of the prosperous family variable on Economic
Development was negative and significant. Then the influence of Human Development on the
prosperous family was negative and significant. This research contributes to theoretical and empirical
studies where it is found that there is an influence between variables that becomes a gap in the findings
of the new research. All indirect effects of exogenous to endogenous variables through the mediation of
Human Development and prosperous families are not entirely significant.