THE ANALYSIS OF FACTORS AFFECTING HUMAN RESOURCE INVESTMENT TOWARDS ECONOMIC GROWTH IN JAVA PERIOD OF 2010-2016
Abstract
This study aims to analyze the impact of human resource investment towards economic growth in Java period of 2010-2016. The human resource investment consists of investment on health and education through government expenditure. The dependent variable is Growth Regional Domestic Product (GRDP) while the independent variables are government expenditure on health sector, government expenditure on education sector, Human Development Index (HDI) and working labor force. This study used panel data which includes cross-section of 6 provinces in Java and time-series of 7 years from 2010 to 2016. The study found that investment on health (government expenditure on health sector), Human Development Index (HDI) and working labor force have significant and positive effects toward economic growth (GRDP). Whereas, investment on education (government expenditure on education sector) has no significant effect towards economic growth.