Analysis of the Effects of Capital Expenditure and HDI on Economic Growth and Poverty in East Aceh District

The purpose of this study is to analyze the effect of regional government capital expenditure and human development index partially and simultaneously on economic growth and poverty. Local government capital expenditure variables and human development index as exogenous variables, while economic growth and poverty as endogenous variables. This research uses time-series data with time series from 2005-2015. The analysis method uses path analysis with the Eviews program. The results of the study with a significance level of 5% indicate that simultaneously capital expenditure and human development index have no significant effect on economic growth, then simultaneously capital expenditure and human development index have a significant effect on poverty and simultaneously capital expenditure and human development index have a significant effect on poverty through economic growth. Partially capital expenditure has a positive and not significant effect on economic growth, then partially the human development index has a negative and not significant effect on economic growth and capital expenditure has a negative and not significant effect on poverty and the human development index has a positive and not significant effect on economic growth.