How important are health and education in boosting sub-national economic growth?

Abstract

Development of the global economy is marked by increasing attention towards the health sector due to Covid-19 outbreak. This research contributes by examining how important is health and education for provincial economic growth, and connect it with foreign direct investments, and infrastructure spending. Taking Indonesia as a case study, and employing GMM and Fixed Effects methods, the analysis found that improving health and education outcomes are key for sub-national economic growth. However, foreign direct investment, domestic direct investment and public spending on infrastructure failed to support growth in the sub-national level. The finding is robust against alternative specifications. For policy suggestions, in order to dampen the negative economic effects of Covid-19 and to boost growth at post-pandemic period, government at all levels must maintain or even increase public spending in health and education which directly target improvements of health and educational outcomes. To ensure the improvements, public spending must be directed to provide good quality health and educational services; services which enhance health outcomes and develop students’ cognitive skills. In addition, good quality health and educational services must be evenly distributed across sub-nationalities. This is aligned with achieving the UN Sustainable Development Goals number 10; reducing inequality within a country.JEL Classification H51; H52; O15

The relationship between regional development, human development and poverty: A perspective from the Indonesian province

“…With sufficient income, the community can provide more life choices to fulfill a decent quality of life (Sianturi et al, 2021). The availability, quality and costs of education, educational facilities and opportunities to obtain an education are achievements that can increase regional economic growth (Verazulianti, Dawood, & Zulham, 2021) of treatment and care are some of the indicators used to determine the level of community poverty (Miar & Greece, 2020).…”

Pengaruh Kurs, Konsumsi Pemerintah Dan Net Foreign Asset Terhadap Neraca Perdagangan Di Negara-Negara Asean

“…Regresi data panel merupakan teknik regresi yang menggabungkan data runtut waktu (time series) dengan data silang (cross section) (Verazulianti & Dawood, Taufiq Carnegie Zulham, 2021) Selanjutnya, hasil estimasi menunjukkan bahwa konsumsi pemerintah memberi pengaruh positif terhadap neraca perdagangan di negara-negara ASEAN. Penjelasan dari temuan ini adalah pemerintah dalam penggunaan pengeluaran konsumsi pemerintah dengan tujuan penyediaan sarana barang public yang bermanfaat bagi sektor swasta.…”

“…Penjelasan dari temuan ini adalah pemerintah dalam penggunaan pengeluaran konsumsi pemerintah dengan tujuan penyediaan sarana barang public yang bermanfaat bagi sektor swasta. Dengan tersedianya barang public yang berguna bagi sektor swasta akan dapat meingkatkan produktivitas sektor swasta (Verazulianti & Dawood, Taufiq Carnegie Zulham, 2021). Meningkatnya produkstivitas sektor swasta dapat meningkatkan daya saing ekspor.…”

Pengaruh Kredit Bank Kepada Sektor Swasta, Kredit Bank Kepada Sektor Pemerintah, Serta Kurs Terhadap Neraca Transaksi Berjalan Di Negara-Negara Asean

“…Terdapat beberapa teknik yang digunakan untuk mengestimasi parameter model dengan data panel, antara lain Pooled Least Square atau Common Effect Model, Model Efek Tetap (Fixed Effect Model), dan Model Efek Random (Random Effect Model). Pemilihan estimasi model yang paling tepat ditentukan melalui beberapa pengujian yaitu, Uji Chow (Chow Test), UjiHausman, dan Uji Lagrange Multiplier(Verazulianti, Dawood, & Zulham, 2021). Adapun bentuk umum dari model regresi panel adalah sebagai berikut :…”