Growth and Employment Determinants Factors in North Sulawesi Province

Abstract

Employment opportunity in order to increase employment opportunities become one of the important issues in economic development that can be realized with a variety of development activities.This study aims to identify and analyze the effect of government spending as education, health, and other sectors on employment, either directly or indirectly through private investment, human development index, economic growth and economic structures in North Sulawesi.This study uses panel data in 15 districts and cities that exist in the province of North Sulawesi.Data analysis technique used is structural equation model (SEM) using AMOS version 20.0.The results showed that the presence of the strong influence of the education sector, government spending, and the health sector on employment both directly and indirectly to private investment, index of human development, economic growth, and economic structure, so that the first and second hypothesis can be accepted.While other sectors of government spending has no significant effect on employment both directly and indirectly towards private investment, human development index, economic growth and economic structures, so the third hypothesis be rejected.