Empirical Analysis of Human Capital Convergence in Indonesia

Anwar, Aminuddin

doi:10.15294/jejak.v11i2.16053

“…Specific to Indonesia's case study, Resosudarmo and Vidyattama (2006) found evidence that regional income per capita convergence existed on province level of Indonesia using data from the 1993 to 2002 period to examine the determinants of income discrepancy on regional level. Anwar (2018) confirmed the existence of convergence for absolute and conditional way by observing human capital growth between two periods, 2004-2010 and 2010-2016. Kharisma, Bayu (2013) also conducted the convergence analysis of income on provincial level in Indonesia from 1984 to 2008 and declared there was a strong existence of absolute and conditional convergence on his case.…”

Section: Literature Reviewsupporting

confidence: 57%

Human Development Disparities and Convergence across Districts of Indonesia: A Spatial Econometric Approach

Miranti

¹

,

2020

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Indonesia is an archipelago country which comprises of two main parts, western and eastern regions and spread into over 500 districts. Each district has their own characteristics, especially in development aspect. Some districts have been growing faster on economic and social development, yet others still fall behind. Using Human Development Index and its components on education, health and economic variables over 2010-2018 period, this study aims to examine convergence on the regional human growth process and investigate the speed of convergence across districts. The result reveals convergence occurred on human development process and its determinants across districts during 2010-2018. Education variables are assumed as the main contributor for boosting the speed of convergence of human development. Spatial dependences are detected among districts, followed by the spatial clusters and spatial outliers through global and local spatial autocorrelation. Applying two spatial autoregressive models, spatial autoregressive lag model (SAR) and spatial autoregressive error model (SEM), confirmed that there is significant spatial spillovers.The speed of convergence for all variables are much declining after the inclusion of spatial lag and error model. As the policy implication, since regional inequality in term of human development is still a major issue, it will be a call for better coordination and cooperation within and between regions.

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“…Specific to Indonesia's case study, Resosudarmo and Vidyattama (2006) found evidence that regional income per capita convergence existed on province level of Indonesia using data from the 1993 to 2002 period to examine the determinants of income discrepancy on regional level. Anwar (2018) confirmed the existence of convergence for absolute and conditional way by observing human capital growth between two periods, 2004-2010and 2010. Kharisma, Bayu (2013 also conducted the convergence analysis of income on provincial level in Indonesia from 1984 to 2008 and declared there was a strong existence of absolute and conditional convergence on his case.…”

Section: Literature Reviewmentioning

confidence: 86%

Human Development Dynamics across Districts of Indonesia: A Study of Regional Convergence and Spatial Approach

Miranti

¹

,

Mendez-Guerra

²

2020

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Indonesia is an archipelago country which comprises of two main parts, western and eastern regions and spread into over 500 districts. Each district has their own characteristics, especially in development aspect. Some districts have been growing faster on economic and social development, yet others still fall behind. Using Human Development Index and its components on education, health and economic variables over 2010-2018 period, this study aims to examine convergence on the regional human growth process and investigate the speed of convergence across districts. The result reveals convergence occurred on human development process and its determinants across districts during 2010-2018. Education variables are assumed as the main contributor for boosting the speed of convergence of human development. Spatial dependences are detected among districts, followed by the spatial clusters and spatial outliers through global and local spatial autocorrelation. Applying two spatial autoregressive models, spatial autoregressive lag model (SAR) and spatial autoregressive error model (SEM), confirmed that there is significant spatial spillovers.The speed of convergence for all variables are much declining after the inclusion of spatial lag and error model. As the policy implication, since regional inequality in term of human development is still a major issue, it will be a call for better coordination and cooperation within and between regions.

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“…The fourth topic is choosing solutions to answers to problems in increasing human capital. Anwar (2018) said that the determinants of the convergence of human capital in the first period were economic growth, poverty, illiteracy, access to sanitation, access to clean water, the number of health centres, and the number of universities. Farhanah & Azizah (2013) said that education is needed to optimize the absorption of Indonesian workers through character building, entrepreneurial development, and the provision of a nationally integrated online network.…”

Section: Research Topicsmentioning

confidence: 99%

Systematic Literature Review: Determination of Government Policy in Health and Education Development for Improved Human Capital

Mulia¹,

Saputra

²

2021

JEL

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Human capital plays a very strategic role in supporting the competitiveness of a country or region. This study aims to determine how the development of human capital is seen from the theoretical and practical settings and how the solutions are resolved. With the approach pattern, Systematic Literature Review in the journal already is published since the year 2011 until 2021 it got the result that human capital research is currently focused on two topics and trends: the development of education and health. The method often used in human capital research is a quantitative approach of 62%, a qualitative approach of 36% and a mixed-method approach of 2%. The cause of the low increase in human capital is the lack of government attention in improving education and health. The solution given to answer the problem of low human capital is by improving the quality of education and improving public health facilities to achieve better human capital. To achieve this goal, the government plays an important role in this increase.

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Empirical Analysis of Human Capital Convergence in Indonesia

Cited by 5 publications

References 26 publications

Human Development Disparities and Convergence across Districts of Indonesia: A Spatial Econometric Approach

Human Development Disparities and Convergence across Districts of Indonesia: A Spatial Econometric Approach

Human Development Dynamics across Districts of Indonesia: A Study of Regional Convergence and Spatial Approach

Systematic Literature Review: Determination of Government Policy in Health and Education Development for Improved Human Capital

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