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The Relationship Between Economic Growth, Human Capital, And Agriculture Sector: Empirical Evidence From Indonesia

Author

Listed:
  • Bashir, Abdul
  • Susetyo, Didik
  • Suhel
  • Azwardi

Abstract

The objective of this study to investigate the long and short-term relationship between economic growth, human capital, and agriculture sector in Indonesia. In addition, to analyze the interrelationship between economic growth and agriculture added value. The data used is time series data in the period 1985-2017 obtained world development indicators from the World Bank database. The analytical approach used is of causality with the vector error correction model (VECM) and simultaneous equations model with two-stage least square (2SLS). The finding of this study, first, in agricultural added value equation indicates the validity of the long and short-term equilibrium relationship between variables, there is long and short-term causality in the direction of economic growth, human capital for agriculture added value; second, the finding in the economic growth model indicates that human capital, agriculture added value, population, government expenditure, foreign direct investment, nonagricultural added value, and technology has positive sign and significant effect on the economic growth; third, the finding in the agriculture added value model indicates that human capital, economic growth, government expenditure, rural population, and technology has positive and significant effect on agricultural added value. Meanwhile, non-agricultural added value has a negative sign and significant effect on agriculture added value.

Suggested Citation

  • Bashir, Abdul & Susetyo, Didik & Suhel & Azwardi, 2018. "The Relationship Between Economic Growth, Human Capital, And Agriculture Sector: Empirical Evidence From Indonesia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 6(4), October.
    • Handle: RePEc:ags:ijfaec:283873
    DOI: 10.22004/ag.econ.283873
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    Cited by:

    1. Cengiz Aytun & Cemil Serhat Akin, 2022. "Can education lower the environmental degradation? Bootstrap panel Granger causality analysis for emerging countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 10666-10694, September.
    2. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.
    3. Feng Ye & Lang Wang & Amar Razzaq & Ting Tong & Qing Zhang & Azhar Abbas, 2023. "Policy Impacts of High-Standard Farmland Construction on Agricultural Sustainability: Total Factor Productivity-Based Analysis," Land, MDPI, vol. 12(2), pages 1-13, January.

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