Abstract:This research investigates the linkage between government expenditure, domestic investment, national income, human development index, and economic growth in Indonesia during the period 2015-2020. This study applied the quantitative method with Common Effect Model, Fixed Effect Model, and Random effect Model to estimate the empirical model. The data in this research were gathered from these main sources, including Statistics Indonesia and the Indonesian Investment Coordinating Board. The classical assumption is… Show more
“…Furthermore, our second proxy for investment is the realization of domestic direct investment (DDI). Based on previous empirical studies, there are findings suggesting that domestic investment has a positive effect on economic growth (Bakari, 2017(Bakari, , 2018Godwin Emmanuel & Kehinde, 2018;Iya & Aminu, 2015;Sumarsono et al, 2022) and on HDI (Feriyanto, 2016).…”
This study aims to investigate the influence of investment, exports, and the internet usage on people's welfare, as measured by Regional GDP (RGDP) per capita and the Human Development Index (HDI). The estimation technique employed is Fixed Effect Model with path analysis approach applied to 34 provinces in Indonesia for the period of 2016-2020. The finding suggests that local government spending, exports, and internet use have a positive and significant effect on the RGDP per capita of which act as intervening variable, thus those three variables are indirectly affect HDI. Furthermore, RGDP per capita, local government spending, and investment are simultaneously have a positive and significant effect on HDI. However, according to t-statistic result, the impact of FDI is not significant statistically. This is possibly due to the FDI schemes in Indonesia of which constitute as non-project investment, where technology spillover is considered minimum, and capital gains tend to be savored by its beneficial owner in foreign countries.
“…Furthermore, our second proxy for investment is the realization of domestic direct investment (DDI). Based on previous empirical studies, there are findings suggesting that domestic investment has a positive effect on economic growth (Bakari, 2017(Bakari, , 2018Godwin Emmanuel & Kehinde, 2018;Iya & Aminu, 2015;Sumarsono et al, 2022) and on HDI (Feriyanto, 2016).…”
This study aims to investigate the influence of investment, exports, and the internet usage on people's welfare, as measured by Regional GDP (RGDP) per capita and the Human Development Index (HDI). The estimation technique employed is Fixed Effect Model with path analysis approach applied to 34 provinces in Indonesia for the period of 2016-2020. The finding suggests that local government spending, exports, and internet use have a positive and significant effect on the RGDP per capita of which act as intervening variable, thus those three variables are indirectly affect HDI. Furthermore, RGDP per capita, local government spending, and investment are simultaneously have a positive and significant effect on HDI. However, according to t-statistic result, the impact of FDI is not significant statistically. This is possibly due to the FDI schemes in Indonesia of which constitute as non-project investment, where technology spillover is considered minimum, and capital gains tend to be savored by its beneficial owner in foreign countries.
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