ABSTRACT

Simon and Eberstadt (1980) of neoclassics concurred that population is not the actual issue in economic growth by stating that population increase is not a problem, on the contrary, it speeds up economic development; and free market will balance the scarcity caused by the population. Negative impacts of rapid population growth affect the education and health sectors (Todaro, 1998: 259-260). Based on the East Java National Economic Survey Results 2002-2006 (BPS: 2006), it can be acknowledged that the number of East Java citizens constantly escalates. This phenomenon will be observed through causality model conveyed by Filler (1999). The research results show that a reciprocal triangular causality pattern between economy (economic growth), level of education and health. Key words: causality, economy, education, health, data panel