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The Composition of Human Capital and Economic Growth: Evidence from Aceh and West Papua Provinces, Indonesia

Author

Listed:
  • Zata Hasyyati

    (Postgraduate Student of Split Site Master Program, Department of Economics, IPB University and The University of Adelaide, Indonesia,)

  • Sahara Sahara

    (Department of Economics, Faculty of Economics and Management, IPB University, Indonesia.)

Abstract

This paper investigates the importance of human capital and each educational level on economic growth in Aceh and West Papua from 2010 to 2017. Examining the dynamic panel data using difference generalized method of moments shows there is insignificant impact of tertiary education on economic growth. Both provinces have U-shape effect of human capital composition, which indicates primary and secondary education seems to contribute more on the economy. Hence, the government should solve these educational levels first. Since the data showed the indication of low quality of educators, teachers' skills improvement on teaching and their wellbeing should be prioritized.

Suggested Citation

  • Zata Hasyyati & Sahara Sahara, 2020. "The Composition of Human Capital and Economic Growth: Evidence from Aceh and West Papua Provinces, Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 132-142.
    • Handle: RePEc:eco:journ1:2020-02-14
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic Growth; Education; Human Capital;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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