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Exploring The Impact of Human Capital, Education, and Health Expenditure on Inclusive Growth in Indonesia

In: Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24)

Author

Listed:
  • Dwi Rahmayani

    (Universitas Negeri Semarang, Departement of Development Economics)

  • Dyah Maya Nihayah

    (Universitas Negeri Semarang, Departement of Development Economics)

  • Grace Natalia Marpaung

    (Universitas Negeri Semarang, Departement of Development Economics)

  • Annis Nurfitriana Nihayah

    (Universitas Negeri Semarang, Departement of Development Economics)

  • Nur Janah Wariyanti

    (Universitas Negeri Semarang, Departement of Development Economics)

Abstract

This research analyzes physical capital, human capital, education, and health expenditure on inclusive economic growth, with data from 33 provinces in Indonesia from 2011-2023. Inclusive economic growth is measured using the Inclusive Economic Development Index. This research used the panel data regression with a fixed effect model to study Gross Fixed Capital Formation, educated labor, uneducated labor, education, and health sector expenditure on inclusive economic growth. This research found that Gross Fixed Capital Formation and educated labor significantly impact inclusive economic growth. Therefore, uneducated labor, education, and health sector expenditures do not significantly impact inclusive economic growth. This paper suggests increasing sustainable investment and equalizing investment. Second, the budget for education and health should be increased. Third, investment in the productive sector must be increased to improve the quality of labor.

Suggested Citation

  • Dwi Rahmayani & Dyah Maya Nihayah & Grace Natalia Marpaung & Annis Nurfitriana Nihayah & Nur Janah Wariyanti, 2024. "Exploring The Impact of Human Capital, Education, and Health Expenditure on Inclusive Growth in Indonesia," Advances in Economics, Business and Management Research, in: Kris Brantas Abiprayu & Avi Budi Setiawan (ed.), Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24), pages 237-244, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-522-5_19
    DOI: 10.2991/978-94-6463-522-5_19
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