Determinant on Economic Growth, Income Disparity, and Poverty of Regencies/Cities in East Java Province

This study analyzed the influence of private investment, capital expenditure ratio, and human capital ratio towards economic growth, income disparity, as well as the number of poor for regencies/cities in East Java Province. The data used in this study were the panel data derived from 2008 to 2012 that covered the total of 38 regencies/cities in East Java Province. The result indicated: First, private investment significantly influenced economic growth in East Java regencies/cities with positive path; Second, capital expenditure ratio influenced significantly on economic growth with negative path; Third, human capital ratio with the proxy of secondary education level (Junior High School/Senior High School/Vocational School) accomplished by the workers aged 15 and above had significant influence on economic growth with positive path; Fourth, the economic growth itself possessed significant influence on income disparity with positive path; Fifth, human capital ratio insignificantly influenced income disparity with negative path; Sixth, economic growth significantly influenced poverty with negative path; and lastly; Seventh, income disparity significantly influenced poverty with positive relationship path.