IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vviiiy2016i1p39-49.html
   My bibliography  Save this article

Does Human Capital Investment Matter For Growth? Evidence From Indonesia During The Fiscal Decentralization Era

Author

Listed:
  • Losina PURNASTUTI

    (Faculty of Economics, Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia)

  • Bambang SUPRAYITNO

    (Faculty of Economics, Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia)

  • SUGIHARSONO

    (Faculty of Economics, Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia)

Abstract

The purpose of this study is to investigate the role of regional government expenditure, workers' education level, and government expenditure for health and education sector in economic growth by using secondary data published by National Bureau of Statistics Indonesia. Panel data estimation approach was adopted to analyze the data. The result of the study shows that education contributes significantly to the improvement of labor productivity. Other findings indicate that the population has positive impacts on various aspects of human development and labor productivity while the total area owned by the local goverment has no effect on both of the two aspects aforementioned. It implies that human resource is an essential component for economic growth and for human development itself.

Suggested Citation

  • Losina PURNASTUTI & Bambang SUPRAYITNO & SUGIHARSONO, 2016. "Does Human Capital Investment Matter For Growth? Evidence From Indonesia During The Fiscal Decentralization Era," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 39-49, June.
    • Handle: RePEc:hrs:journl:v:viii:y:2016:i:1:p:39-49
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/June_2016/1.3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    2. Zulal S. Denaux, 2007. "Endogenous Growth, Taxes and Government Spending: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 124-138, February.
    3. Minh Quang Dao, 2012. "Government expenditure and growth in developing countries," Progress in Development Studies, , vol. 12(1), pages 77-82, January.
    4. Andreas Kyriacou & Oriol Roca sagalés, 2009. "Fiscal descentralization and the quality of government: evidence from panel data," Hacienda Pública Española / Review of Public Economics, IEF, vol. 189(2), pages 131-155, June.
    5. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2006. "Governance matters V: aggregate and individual governance indicators for 1996 - 2005," Policy Research Working Paper Series 4012, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Imran HUSSAIN & Ramesh CHANDRA DAS & Aloka NAYAK, 2022. "Interrelationships Between Human Capital And Intellectual Capital: Evidence From The Panel Of High-Income And Low And Middle-Income Groups Of The World," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 107-122, June.
    3. Olga OVCHARENKO & Viktoriia SMIESOVA & Maryna IVANOVA & Nataliia KOVTUN & Liliya ZOLOTUKHINA, 2021. "Economic Security Management At The Meso-Level: Methodological And Legal Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 201-216, June.
    4. Imran HUSSAIN & Ramesh CHANDRA DAS, 2023. "Human Capital Formation And Economic Growth Relationships: Panel Data Insights For The Indian States," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 57-71, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vu, Khuong M & Asongu, Simplice, 2020. "Backwardness advantage and economic growth in the information age: A cross-country empirical study," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    2. Malebogo Bakwena & Philip Bodman & Thanh Le & KK Tang, "undated". "Avoiding the Resource Curse: The Role of Institutions," MRG Discussion Paper Series 3209, School of Economics, University of Queensland, Australia.
    3. Brännlund Runar & Karimu Amin & Söderholm Patrik, 2017. "Convergence in carbon dioxide emissions and the role of growth and institutions: a parametric and non-parametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 359-390, April.
    4. T. Gries & M. Redlin, 2011. "International integration and the determinants of regional development in China," Economic Change and Restructuring, Springer, vol. 44(1), pages 149-177, April.
    5. Mohammad Zulfan Tadjoeddin, 2012. "Electoral conflict and the maturity of local democracy in Indonesia: testing the modernisation hypothesis," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(3), pages 476-497.
    6. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2014. "Product Complexity, Quality of Institutions and the Protrade Effect of Immigrants," The World Economy, Wiley Blackwell, vol. 37(1), pages 63-85, January.
    7. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    8. Kemptner, Daniel & Tolan, Songül, 2018. "The role of time preferences in educational decision making," Economics of Education Review, Elsevier, vol. 67(C), pages 25-39.
    9. Robert MacCulloch & Silvia Pezzini, 2010. "The Roles of Freedom, Growth, and Religion in the Taste for Revolution," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 329-358, May.
    10. Lewkowicz, Jacek & Woźniak, Michał & Wrzesiński, Michał, 2022. "COVID-19 and erosion of democracy," Economic Modelling, Elsevier, vol. 106(C).
    11. Ligia Alba Melo-Becerra & Luis E. Arango & Oscar Iván Ávila-Montealegre & Jhorland Ayala-García & Leonardo Bonilla-Mejía & Jesús Alonso Botero-García & Carolina Crispin-Fory & Manuela Cardona & Daniel, 2023. "Aspectos financieros y fiscales del sistema de salud en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 106, pages 1-92, October.
    12. Md. Sharif Hossain & Md. Thasinul Abedin, 2016. "Multivariate Dynamic Co-integration and Causality Analysis between Inflation and its Determinants," Journal of Economics and Behavioral Studies, AMH International, vol. 8(5), pages 240-250.
    13. Aysit Tansel & Nil Demet Güngör, 2016. "Gender Effects of Education on Economic Development in Turkey," World Scientific Book Chapters, in: Nadereh Chamlou & Massoud Karshenas (ed.), Women, Work and Welfare in the Middle East and North Africa The Role of Socio-demographics, Entrepreneurship and Public Policies, chapter 3, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    14. Kosack, Stephen, 2003. "Effective Aid: How Democracy Allows Development Aid to Improve the Quality of Life," World Development, Elsevier, vol. 31(1), pages 1-22, January.
    15. Phillip LeBel, 2008. "Managing Risk in Africa Through Institutional Reform," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 165-181, June.
    16. Panicos Demetriades & David Fielding, 2012. "Information, Institutions, And Banking Sector Development In West Africa," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 739-753, July.
    17. Tausch, Arno, 2018. "The return of religious Antisemitism? The evidence from World Values Survey data," MPRA Paper 90093, University Library of Munich, Germany.
    18. Antonio Ciccone & Marek Jarociński, 2010. "Determinants of Economic Growth: Will Data Tell?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 222-246, October.
    19. Christopher F Baum & Mustafa Caglayan & Bing Xu, 2017. "The Impact of Uncertainty on Financial Institutions," Boston College Working Papers in Economics 939, Boston College Department of Economics, revised 20 Sep 2018.
    20. Berkowitz, Daniel & DeJong, David N., 2002. "Accounting for growth in post-Soviet Russia," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 221-239, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:viii:y:2016:i:1:p:39-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.