Human Capital and Poverty Reduction Through Economic Growth in East Kutai Regency

Abstract

Poverty remains a major development challenge in resource-based regions, including East Kutai Regency, where economic growth has not always been followed by consistent poverty reduction. This study aims to analyze the effect of human capital, represented by education and health, on poverty reduction through economic growth in East Kutai Regency during the period 2010–2025. This study employs a quantitative approach using time series data from 2010–2025. Data analysis was conducted to examine the direct and indirect relationships between education, health, economic growth, and poverty reduction through a mediation approach. The findings are expected to provide empirical evidence regarding the role of human capital development in improving economic performance and reducing poverty. The study indicates that improving education and health quality contributes to strengthening economic growth, which subsequently supports poverty reduction. The results emphasize the importance of human capital investment as a long-term development strategy, particularly in regions with high dependence on natural resources. This research provides policy implications for local governments in designing inclusive economic development strategies through improvements in education, health services, and sustainable economic diversification.