IDEAS home Printed from https://ideas.repec.org/a/jfr/rwe111/v6y2015i1p58-71.html
   My bibliography  Save this article

PMDN, PMA and Labor Factors as the Indicators of the Success of Development in Province of Maluku: An Application of New Growth Theory

Author

Listed:
  • Ohorella Hasna

Abstract

The main purposes of the research are to analyze: (i) the effect of technological progress (A), capital by proxy of PMDN (domestic investment) and PMA (foreign investment), Labor (L) and human development (H) on economic growth, (ii) the effect of economic growth (Y) of public expenditures in health area (GEK) and of public expenditure in educational area (GEP) on human development, and (iii) the effect of health index (INKES), education index (INPDDK), and purchasing power index (INDB) on the productivity of labor in the Province of Maluku. The method used in this research was an explanatory method and the type of research was verificative. The data used was panel data with a secondary data type consisting of time series data for 2004-2010 and cross-section in 8 (eight) regencies/municipalities. The method of parameter estimation was by using a Two Stage Least Square (TSLS) method for economic growth and human development equation as a simultaneous equation and productivity equation as a single equation, each with Fixed Effect Model (FEM). The research results showed that (i) Technological progress, capitals by proxy of PMDN and PMA, labor, and human development have a positive and significant effect on economic growth, (ii) Economic growth has a positive and insignificant effect, whereas public expenditures in health and educational areas have a positive and significant effect, on human development, and (iii) health index has a positive and significant effect, and educational and purchasing power indexes have a positive and insignificant effect, on the productivity of labor, whereas purchasing power index has a positive effect on the productivity of labor in the Province of Maluku.

Suggested Citation

  • Ohorella Hasna, 2015. "PMDN, PMA and Labor Factors as the Indicators of the Success of Development in Province of Maluku: An Application of New Growth Theory," Research in World Economy, Research in World Economy, Sciedu Press, vol. 6(1), pages 58-71, March.
    • Handle: RePEc:jfr:rwe111:v:6:y:2015:i:1:p:58-71
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/6197/3710
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/6197
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gustav Ranis, Frances Stewart and Emma Samman, "undated". "Human Development: beyond the HDI," QEH Working Papers qehwps135, Queen Elizabeth House, University of Oxford.
    2. P. Palazzi & A. Lauri, 1998. "The Human Development Index: suggested corrections," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 51(205), pages 193-221.
    3. McDonald, Scott & Roberts, Jennifer, 2002. "Growth and multiple forms of human capital in an augmented Solow model: a panel data investigation," Economics Letters, Elsevier, vol. 74(2), pages 271-276, January.
    4. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    6. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    7. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426, December.
    8. repec:wbk:wbpubs:12425 is not listed on IDEAS
    9. Amei Zhang, 1996. "Economic Growth and Human Development in China," Human Development Occasional Papers (1992-2007) HDOCPA-1996-06, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    Full references (including those not matched with items on IDEAS)

    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. Cheah, Chee Keong & Masih, Mansur, 2017. "Does the growth of islamic bank financing depend on stock market growth? evidence from Malaysia," MPRA Paper 106192, University Library of Munich, Germany.
    2. Grimm, Michael & Harttgen, Kenneth & Klasen, Stephan & Misselhorn, Mark, 2008. "A Human Development Index by Income Groups," World Development, Elsevier, vol. 36(12), pages 2527-2546, December.
    3. Suri, Tavneet & Boozer, Michael A. & Ranis, Gustav & Stewart, Frances, 2011. "Paths to Success: The Relationship Between Human Development and Economic Growth," World Development, Elsevier, vol. 39(4), pages 506-522, April.
    4. Martine AUDIBERT & Pascale COMBES MOTEL & Alassane DRABO, 2010. "Global Burden of Disease and Economic Growth," Working Papers 201036, CERDI.
    5. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
    6. Kemal Soyer & Hale Ozgit & Husam Rjoub, 2020. "Applying an Evolutionary Growth Theory for Sustainable Economic Development: The Effect of International Students as Tourists," Sustainability, MDPI, vol. 12(1), pages 1-20, January.
    7. Uddin, Md Akther & Masih, Mansur, 2015. "Finance, growth and human development: An Islamic economic development perspective," MPRA Paper 65818, University Library of Munich, Germany.
    8. Abdelhafidh Dhrifi & Saleh Alnahdi & Raouf Jaziri, 2021. "The Causal Links Among Economic Growth, Education and Health: Evidence from Developed and Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1477-1493, September.
    9. Michelle Baddeley, 2006. "Convergence or Divergence? The Impacts of Globalisation on Growth and Inequality in Less Developed Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(3), pages 391-410.
    10. Zaman, Khalid & Izhar, Zeeshan & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between financial indicators and human development in Pakistan," Economic Modelling, Elsevier, vol. 29(5), pages 1515-1523.
    11. Md. Saiful Islam, 2020. "Human Capital and Per Capita Income Linkage in South Asia: A Heterogeneous Dynamic Panel Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1614-1629, December.
    12. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    13. Jana Asher & Beth Osborne Daponte, 2010. "A Hypothetical Cohort Model of Human Development," Human Development Research Papers (2009 to present) HDRP-2010-40, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    14. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    15. Carstensen Kai & Hartmann Susanne & Gundlach Erich, 2009. "The Augmented Solow Model with Mincerian Schooling and Externalities," German Economic Review, De Gruyter, vol. 10(4), pages 448-463, December.
    16. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    17. Utpal Kumar De, 2014. "Globalisation and cointegration among the states and convergence across the continents: A panel data analysis," Economic Analysis and Policy, Elsevier, vol. 44(1), pages 107-121.
    18. Cheikh Tidiane Ndiaye & Armand Akomavo Dagoudo & Babacar Mbengue, 2021. "Growth and Income Distribution Inequalities in Sub-Saharan Africa: A Dynamic Model Approach [Croissance et inégalités de distribution des revenus en Afrique subsaharienne : une approche par les mod," Working Papers hal-03202484, HAL.
    19. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    20. Farhani, Sahbi & Mrizak, Sana & Chaibi, Anissa & Rault, Christophe, 2014. "The environmental Kuznets curve and sustainability: A panel data analysis," Energy Policy, Elsevier, vol. 71(C), pages 189-198.

    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:jfr:rwe111:v:6:y:2015:i:1:p:58-71. 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: Gina Perry (email available below). General contact details of provider: http://rwe.sciedupress.com .

    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.