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Financial Inclusion And Human Capital Investment In Urban And Rural: A Case Of Aceh Province

Author

Listed:
  • Nanda RAHMI

    (Assistant Professor at the Departement of Economics, Fakultas Ekonomi dan Bisnis, Universitas Syiah Kuala, Banda Aceh, Indonesia)

  • ALIASUDDIN

    (Associate Professor at the Department of Economics, Fakultas Ekonomi dan Bisnis, Universitas Syiah Kuala, Banda Aceh, Indonesia)

Abstract

this study is to analyze the effects of financial inclusion and other variables on human capital investment in urban dan rural region of Aceh Province by using pooled regression model with sample size total of 800 households. The results show that financial inclusion and income have a positive and significant effect on human capital investment, whereas family size has negative and significant. Furthermore, male and urban have bigger effects on human capital investment than female and rural region, respectively. Meanwhile, age has a bell-shaped to human capital investment indicates that the higher age smaller human capital investment. The last, the average of years of schooling in urban and rural regions is nine-year means the education level of these regions is junior high school. It is recommended that government should encourage banking to increase their services to a rural area in order to increase human capital investment.

Suggested Citation

  • Nanda RAHMI & ALIASUDDIN, 2020. "Financial Inclusion And Human Capital Investment In Urban And Rural: A Case Of Aceh Province," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 47-54, June.
    • Handle: RePEc:hrs:journl:v:xii:y:2020:i:1:p:47-54
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    File URL: http://www.rsijournal.eu/ARTICLES/June_2020/4.pdf
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    Cited by:

    1. Dimitrios TSIOTAS & Nikolaos AXELIS & Serafeim POLYZOS, 2022. "Detecting City-Dipoles In Greece Based On Intercity Commuting," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-30, June.
    2. Oleg ANDREEV & Oksana LOMAKINA & Ariadna ALEKSANDROVA, 2021. "Diversification Of Structural And Crisis Risks In The Energy Sector Of The Asean Member Countries," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 149-160, June.
    3. Imade Yoga PRASADA & Aura DHAMIRA & Agus Dwi NUGROHO, 2021. "Effects Of Climatic Factors On The Productivity Of Smallholder Rubber Plantations In South Sumatra, Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 109-121, June.

    More about this item

    Keywords

    Financial Inclusion; Human Capital Investment; Aceh Province; Indonesia;
    All these keywords.

    JEL classification:

    • G5 - Financial Economics - - Household Finance
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D1 - Microeconomics - - Household Behavior
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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