ANALYSIS OF THE INFLUENCE OF SOCIAL-ECONOMIC VARIABLES TO THE

HUMAN DEVELOPMENT INDEX IN THE PROVINCE OF EAST JAVA

This research aims to determine how much influence of the socio-economic variables to the
human development index in the province of East Java in 2004-2011. Socio-economic variables
are independent variables which include poverty, income per capita, infant mortality and
illiteracy rates. The type of data which used is the data time series and cross section of secondary
data that published by the Central Statistical agency/Badan Pusat Statistik (BPS) from 2004 to
2011.
The model is estimated by the fixed effect model approach (FEM) cross section weight. Based
on the estimation and statistical test results obtained that the per capita income of the
independent variables give positive effect significantly to the human development index in East
Java province at the level of 5 percent. while the percentage of poor people, infant mortality and
illiteracy give negative effect significantly to the human development index in province of east
Java at the level of 5 per cent.
Beside that, its seem that the value of R Square is equal to 0.989, meaning that all independent
variables (poverty, income per capita, infant mortality, and illiteracy) can explain the dependent
variable (human development index) is 98.9 percent. While the leftovers of 1,1 percent is
explained by other variables outside from this model research
the results of this study indicate that to improve the IPM can be done by increasing the per capita
income, and decreasing percentage of poverty, infant mortality and illiteracy rates.
keywords: human development index, poverty rates, per capita income, infant mortality,
illiteracy rates.