Does Human Capital Matter for Indonesia's Economic Growth?
This study investigates the impact of human capital in the context of health and education on Indonesia's economic growth, which includes physical capital investment and trade openness as control variables. Using time series data from 1981 to 2022 and employing econometric techniques by applyi...
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Jurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas Sriwijaya
2025-01-01
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| Series: | Jurnal Ekonomi Pembangunan |
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| Online Access: | https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23186 |
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| author | Vita Kartika Sari Dwi Prasetyani |
| author_facet | Vita Kartika Sari Dwi Prasetyani |
| author_sort | Vita Kartika Sari |
| collection | DOAJ |
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This study investigates the impact of human capital in the context of health and education on Indonesia's economic growth, which includes physical capital investment and trade openness as control variables. Using time series data from 1981 to 2022 and employing econometric techniques by applying the ARDL model. The findings reveal that education, investment, and trade openness have a positive and statistically significant impact on Indonesia's economic growth. Surprisingly, life expectancy has a negative and significant impact on Indonesia's economic growth. This unexpected result warrants further investigation to identify potential confounding factors or data limitations. Despite this finding, the study emphasizes the crucial role of health in human capital and long-run economic prosperity. Among the policy suggestions are enhancing nutrition, guaranteeing access to high-quality healthcare, and maximizing health transformation through the development of public health services. Concurrently, investments in education, particularly in improving quality, accessibility, and alignment with labor market demands, are essential. These findings underscore the need for a comprehensive approach to economic development that prioritizes human capital development while addressing the complexities of health-growth relationships.
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| format | Article |
| id | doaj-art-a13d9cccad0047b1aec535c5d229747f |
| institution | Kabale University |
| issn | 1829-5843 2685-0788 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Jurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas Sriwijaya |
| record_format | Article |
| series | Jurnal Ekonomi Pembangunan |
| spelling | doaj-art-a13d9cccad0047b1aec535c5d229747f2025-01-17T11:19:09ZengJurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas SriwijayaJurnal Ekonomi Pembangunan1829-58432685-07882025-01-0122210.29259/jep.v22i2.23186Does Human Capital Matter for Indonesia's Economic Growth?Vita Kartika Sari0https://orcid.org/0000-0001-8554-8590Dwi Prasetyani1Department of Development Economics, Faculty of Economics and Business , Universitas Sebelas Maret, Surakarta, IndonesiaDepartment of Development Economics, Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia This study investigates the impact of human capital in the context of health and education on Indonesia's economic growth, which includes physical capital investment and trade openness as control variables. Using time series data from 1981 to 2022 and employing econometric techniques by applying the ARDL model. The findings reveal that education, investment, and trade openness have a positive and statistically significant impact on Indonesia's economic growth. Surprisingly, life expectancy has a negative and significant impact on Indonesia's economic growth. This unexpected result warrants further investigation to identify potential confounding factors or data limitations. Despite this finding, the study emphasizes the crucial role of health in human capital and long-run economic prosperity. Among the policy suggestions are enhancing nutrition, guaranteeing access to high-quality healthcare, and maximizing health transformation through the development of public health services. Concurrently, investments in education, particularly in improving quality, accessibility, and alignment with labor market demands, are essential. These findings underscore the need for a comprehensive approach to economic development that prioritizes human capital development while addressing the complexities of health-growth relationships. https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23186Economic growthHealth EducationPhysical capitalTrade |
| spellingShingle | Vita Kartika Sari Dwi Prasetyani Does Human Capital Matter for Indonesia's Economic Growth? Jurnal Ekonomi Pembangunan Economic growth Health Education Physical capital Trade |
| title | Does Human Capital Matter for Indonesia's Economic Growth? |
| title_full | Does Human Capital Matter for Indonesia's Economic Growth? |
| title_fullStr | Does Human Capital Matter for Indonesia's Economic Growth? |
| title_full_unstemmed | Does Human Capital Matter for Indonesia's Economic Growth? |
| title_short | Does Human Capital Matter for Indonesia's Economic Growth? |
| title_sort | does human capital matter for indonesia s economic growth |
| topic | Economic growth Health Education Physical capital Trade |
| url | https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23186 |
| work_keys_str_mv | AT vitakartikasari doeshumancapitalmatterforindonesiaseconomicgrowth AT dwiprasetyani doeshumancapitalmatterforindonesiaseconomicgrowth |