The Role of Public Spending on Education, Health, and Economic Growth toward Human Development Index in the Local Economy

Abstract

This study investigates the effect of economic growth, education expenditures, and health expenditures on human development index (HDI) in Jambi Province. This study used panel data of 11 district/cities from 2012 to 2019. The analytical approach was quantitative by applying panel data regression models. The findings of the study indicated that the economic growth, education expenditure, and health expenditure had a significant and positive influence on the human development index. The implication of the model in this study shows that the efforts made by the Jambi provincial government are effective and optimal in allocating education and health spending to encourage increased human capital as measured by a high human development index. This is input in structural reforms in the education and health sectors to ensure that skilled human resources are developed in areas critical to economic development.

Enhancing Human Capital in Indonesia: Does Economic Policy Work?

“…The Education Budget (EB) has a significant positive effect on HDI in all models. These results are consistent with the studies of Mongan [30], Nurdiana et al [16], and Nurvita et al [31] but inconsistent with Widodo et al [32] and Yogiantoro et al [33]. Education broadens one's opportunities.…”

Pengaruh Belanja Kesehatan, Belanja Pendidikan, Dan Pertumbuhan Ekonomi Terhadap Ipm Di Provinsi Jawa Barat

“…Peningkatan pendapatan akan memungkinkan masyarakat dapat menikmati hidup yang layak, mengakses pendidikan dan kesehatan yang lebih baik. Banyak studi menunjukkan bahwa peningkatan IPM berbagai daerah dipengaruhi secara signifikan oleh peningkatan aktifitas ekonomi (PDRB) atau pertumbuhan ekonomi yang terjadi (Sania et al, 2021;Arifin et al, 2020;Nurvita et al, 2022). Namun demikian, karena adanya perbedaan kondisi disetiap daerah, sehingga pertumbuhan ekonomi atau nilai PDRB daerah tidak cukup signifikan untuk meningkatkan IPM di daerah tersebut (Naiggolan, 2021;Suryani & Sartika, 2021).…”

“…Sebagian besar studi menghasilkan kesimpulan bahwa pengeluaran atau belanja pendidikan memiliki pengaruh signifikan dan positif terhadap IPM. Hasil ini setidaknya diperoleh ada studi Maryozi et al, (2022) pada wilayah pengamatan Provinsi Riau serta Nurvita et al, (2022) dengan wilayah pengamatan Provinsi Jambi. Demikian pula dengan studi Suryani & Sartika, (2021) yang menyatakan bahwa biaya kesehatan dan sarana kesehatan berpengaruh signifikan terhadap IPM Jawa Barat.…”

The Impact of Regional Expenditures on the Quality of Human Development in South Sumatra

“…Several studies have been conducted discussing the effect of regional expenditures on the human development index, for example those done by [10], [11], [12], and [13] also discuss how regional expenditures, especially the allocation of spending on the health, education and community welfare sectors can affect the level of quality of human development through HDI indicators outside the South Sumatra area. The results of this study are relatively consistent, stating that regional spending has a positive and significant effect on HDI.…”