and examine the influence of economic growth, poverty, health facility, teacher quality, and school

participation rate (SPR) on children not in school (CNS), using panel data in 34 provinces in Indonesia during

2017-2023. Economic growth has a positive effect on teacher quality or the higher the level of economic

growth, the higher the quality of teachers in the three groups (elementary, junior high and senior high), only at

the elementary school level the effect is not significant. Furthermore, poverty and health facilities do not affect

teacher quality at the three levels. SPR is negatively affected by health facilities for all levels of education, but

economic growth and teacher quality do not affect SPR. Poverty has a significant positive effect on CNS,

conversely, increasing teacher quality has a negative impact on CNS at the elementary school level, but at the

junior high and senior high levels the opposite occurs, where increasing teacher quality actually increases

CNS. Then SPR has a negative effect at the elementary school level, but at the junior high and senior high

Education has an important role in the life of the nation and state in an effort to create quality human resources.

Education has become a basic need for every human being in an effort to educate the life of the nation, because

through education efforts to improve people's welfare can be realized. Through education, human resources

can understand and be ready to face changes and development of a country more quickly. The problem of the

quality and quantity of human resources is also caused by the low quality of education which is marked by low

literacy rates, low equality of education, and relatively inadequate educational process standards.

Understanding the education system in a country cannot be separated from the philosophy that has been used

as the basis and ideals of the struggle to achieve goals. When western countries have a rationalist, materialist,

and pragmatic philosophy of life, the education system created by the west is certainly rationalist, pragmatic,

production capacity which will lead to growth and employment opportunities, so that poverty can be

suppressed or even eliminated through human development because this poverty can have a negative impact on

various sectors, especially in the field of education. On the other hand, education is also believed to be one

way to break the chain of poverty where Indonesia still has a percentage of poor people and even extreme

poverty that still needs to be improved, especially through education. In line with the existence of poverty that

can have a direct or indirect impact on dropping out of school or children not in school (CNS). Children not in

school are actually worse than CNS because they have not been able to receive education at a certain level of

education with their school age. An overview of the development of the CNS percentage from 2022 to 2023

can be seen in Figure 1.

school level is a problem at the high school level that can be caused by various problems, especially from

family economic problems such as limited funds and demands to work due to the child's family economic

problems. The problem is directly related to the low level of family income so that government policies are

needed. One of them is an effort to increase economic activity through economic growth.

Indonesia's economic growth can be said to be slightly unstable, especially in 2020 due to COVID-19, which

peaked at -2.07% in 2021, but reached an average of 5% per year, precisely in 2023, 5.05%; in 2022 it reached

5.31% and in 2019 it reached 5.02%. This can encourage an increase in facilities and infrastructure for a more

productive education sector. However, the quality of education is still not up to expectations, namely the

occurrence of school dropouts and CNS. With high economic growth, the government can also obtain more

taxes that can be used in the education sector in an effort to increase facilities and infrastructure as well as

will have an impact on increasing school participation which will ultimately have a decreasing effect on CNS.

Furthermore, the development of health facilities can also be an option in reducing CNS because a certain level

of health is one of the main requirements for achievement, especially for children who are undergoing

elementary and secondary education.

Health facilities proxies by health centers can provide services to the community in an effort to improve health.

Because adequate health levels can create socio-economic improvements in the community. The number of

health centers has increased from year to year, but not evenly (BPS, 2023). This can be a barrier to forming

healthy humans, including students, so that they cannot directly learn with full hope, which can result in a

decrease in school participation rates which can have a negative impact on education, especially increasing

CNS, because the increase in School Participation Rates is expected to have a direct impact on decreasing

motivation and enthusiasm to students to learn responsibly both at home and at school. However, the quality of

teachers is also determined by the level of income or salary they receive, while income or output increases in

line with economic growth. The relationship between the concepts of economic growth, poverty, LFPR health

facilities and teacher quality and CNS can be stated in Figure 2.

Economic growth can be sourced from supply and demand. In terms of demand, it can be expressed in a

mathematical equation as Y = C + I + G + (X-M), where Y = output or income, C = consumption, I =

investment or capital accumulation, G = government spending, X = exports and M = imports. So it can be seen

that to increase income or economic growth can be done by increasing the four variables either together or

emerged as a reaction to this growth theory is endogenous economic growth, one of which is the production

function Y = AK (one form of this function which is a simplification of the Cobb-Douglas function).

Economic growth is an increase in the long-term capacity of the country concerned to provide various

economic goods to its population. A strong economy is reflected in high economic growth. The economic

growth of a country can be influenced by the existence of an open economic system (Branson, 1992; Todaro

and Smith, 2013, ). Next according to Adam Smith explained that economic growth is a process of combining

population growth with technological progress. In line with David Ricardo, he stated that economic growth is a

process of attraction between two forces, namely “the law of diminishing returns” and technological progress.

Apart from that, proponents of classical economic growth theory really prioritize liberal or laissez faire

principles, where all economic activities are expected to be free without any government interference, in this

case supporting economic openness, both trade openness and financial openness. The linear growth theory

stages of growth theory developed by Rostow, also formulates development patterns through 5 stages

including 1) Modern economic stage; 2) Take-off precondition stage; 3) Take off stage; 4) stage towards

maturity and 5) stage towards high consumption. Furthermore, the economic growth theory according to

Harrod–Domar also explains the same thing, to achieve a steady level of economic growth in a country’s

economy lies in the active role of investment (Jhingan, 1997). Harrod-Domar stated that the level of

, α+β=1 merupakan syarat fungsi asal

Where: Y = Total production, A = Technology level, K = Capital or total capital stock and L = Number of

workers. This equation can be linearized to obtain:

Next, by differentiating this equation regarding K and L, growth is obtained

So it can be seen that growth is the elasticity of capital times its growth plus the elasticity of labor plus the

growth of labor. There is a level of economic growth that comes from 3 sources, namely capital accumulation,

increasing the number of workers and improving technology.

appropriate investment in the economy, both in physical and non-physical forms. Encouraging technological

will have a big influence on economic growth. Technological advances, many economists view this component

improvements in old ways of completing work that was previously carried out traditionally (Cypher and Dietz,

role besides capital as recommended by endogenous growth theory (new growth theory). Science and

is not only exogenous but endogenous.

(R&D), the main drivers of economic growth.

Blaug, M., (1976) stated that a good case can now be made for the view that educational expenditure does

partake to a surprising degree of the nature of investment in enhanced future output. To that extent, the

consequences of the education in the sense of skill embodied in people may be viewed as human capital,

which is not to say that people themselves are being treated capital. In other word, the resources devoted to

maintaining and increasing the stok of human beings, but the resources devoted to maintaining and increasing

the stock of human beings remain consumption by virtue of the abolition of slavery”.