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Human Capital Spillovers and Human Development Index in Yogyakarta Special Region and Central Java

Author

Listed:
  • Joko Susanto

    (Faculty of Economics and Business, UPN “Veteran” Yogyakarta, Yogyakarta Special Region, Indonesia)

  • Didit Welly Udjianto

    (Faculty of Economics and Business, UPN “Veteran” Yogyakarta, Yogyakarta Special Region, Indonesia)

Abstract

This study analyzes the spillover of human capital in the Yogyakarta Special Region and Central Java. The research data includes the Human Development Index (HDI), capital, the ratio of college graduate workers, and the number of medical personnel in 2017 published by the Central Bureau of Statistics (BPS). This study uses a Spatial Regression analysis that includes elements of human capital spillover estimated by Geoda software. The results showed that there was a spillover of human capital between regencies/cities in Yogyakarta Special Region and Central Java. Lambda coefficient value, in Spatial Error Model (SEM), amounting to 0.5074 indicates that the Human Development Index (HDI) score of each regency/city will get an influence of 0.5074 multiplied by the HDI value of the neighboring regency/city. The capital variable is significant and exhibits that a rise in the HDI score will follow an increase in the number of capital. However, the ratio of college-educated worker and medical personnel is not significant. Due to the linkages between these provinces, the regency government and the provincial government should synergize each other, especially in the formulation of economic policies.

Suggested Citation

  • Joko Susanto & Didit Welly Udjianto, 2019. "Human Capital Spillovers and Human Development Index in Yogyakarta Special Region and Central Java," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 5(2), pages 57-64, June.
    • Handle: RePEc:mgs:ijoied:v:5:y:2019:i:2:p:57-64
    DOI: 10.18775/ijied.1849-7551-7020.2015.52.2004
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    References listed on IDEAS

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    4. Allah Morad Seif & Hossein Panahi & Davoud Hamidi Razi, 2017. "Regional Economic Growth and Spatial Spillover Effects in MENA Area," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 765-787, Autumn.
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    Cited by:

    1. Erdemalp Ozden & Didem Guleryuz, 2022. "Optimized Machine Learning Algorithms for Investigating the Relationship Between Economic Development and Human Capital," Computational Economics, Springer;Society for Computational Economics, vol. 60(1), pages 347-373, June.

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    More about this item

    Keywords

    Human capital; Spillover; Human development index;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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