Last modified: 2023-11-14
Abstract
The objective of the study is to examine the impact of the labor force participation rate, population quality, and the level of openness to economic growth in North Sumatra Province. This study employs secondary data from 2017 to 2021. The panel data regression model was utilized, with three forms of estimation: common effect model, fixed effect model, and random effect model. Three tests are used to decide which model is ideal to use in the test: the Chow test, the Hausmant test, and the LM test. The fixed effect model was chosen based on the results of the tests that were performed. The partial results show that the Variable Labor Force Participation Rate has a positive and significant effect on North Sumatra's economic growth, whereas population quality and openness have a negative and significant effect on North Sumatra's economic growth and, together (simultaneously), the labor force participation rate. The quality of the population and the amount of open damping have a positive effect on economic growth in North Sumatra Province. In addition to this, the R Square value test results for the coefficient of determination show a value of 0.351 or 35.1% indicating that the ability of the independent variable to explain the effect on the dependent variable and the remaining 64.9% can be explained by other variables outside the research variables. Recommendations for the election of the North Sumatra government may provide training to job seekers so that they have skills, and the government has achievements in opening jobs so that action is reduced, and economic growth is increased.