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The Effect Of Government Spending On Education To Human Capital In Aceh Province

Author

Listed:
  • SE Sartiyah

    (Faculty of Economics and Business, Syiah Kuala University Banda Aceh Indonesia)

  • Sri Hartoyo

    (Department of Economics, Faculty of Economics and Management Bogor Agricultural University, Indonesia)

  • Yusman Syaukat

    (Department of Economics, Faculty of Economics and Management Bogor Agricultural University, Indonesia)

  • Rina Oktaviani

    (Department of Economics, Faculty of Economics and Management Bogor Agricultural University, Indonesia)

Abstract

This study was conducted to examine the effect of government spending on education, poverty, income per capita and the dummy of the main and newly established regions to education in Aceh Province. The data used in this study are panel data of 23 city districts in Aceh Province from 2008 to 2013. To estimate multiple models of data panels, Common Effect Model and The SYSLIN Procedure 2 SLS Estimation using SAS 9.31 Program are used. The results of the study showed that government spending on education, income per capita in main regions are positively and significantly effect on education, while poverty negatively affects on education in Aceh Province. However, education has a small response to government spending on education in Aceh Province. According to the results of the research, it is recommended for local governments to intensify the service and supervision of education in the newly established regions, specifically in remote areas.

Suggested Citation

  • SE Sartiyah & Sri Hartoyo & Yusman Syaukat & Rina Oktaviani, 2017. "The Effect Of Government Spending On Education To Human Capital In Aceh Province," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 6(4), pages 18-28, December.
    • Handle: RePEc:sph:rjedep:v:6:y:2017:i:4:p:18-28
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    References listed on IDEAS

    as
    1. Luise Mladen & Rocsana Tonis (Bucea-Manea), 2016. "Premises for Adapting Curriculum and Educational Package to Labor Market Requirements," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 5(3), pages 38-45, September.
    2. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
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    More about this item

    Keywords

    Aceh Province Indonesia; Education; Government spending; Poverty;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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