Analysis of Economic Growth, Poverty, and Investment Indonesia: A Two-Stage Least Square Approach

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Analysis reports that poverty impacts economic growth in Indonesia, suggesting investment and human development can improve conditions.

Poverty significantly hinders economic growth by restricting consumption and limiting productivity in Indonesia.
The study reveals that government spending on infrastructure and education positively influences economic growth.
Using the Two-Stage Least Squares method, the analysis addresses potential endogeneity between investment and growth.
Integrated policies focused on governance and education alignment are necessary for sustainable economic development.

Dilla et al. (2025) studied this question.

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