Economic Growth: Analysis of Health, Education and Standard of Living in East Java 2012-2016

Open Access
Article Info
Submitted: 2020-06-04
Published: 2020-06-05
Section: Rural and Regional Governance
Language: EN
Economic growth is the main important thing in order to develop the regional development. East Java has the potential to develop its economic growth because of one of the most populous provinces in Indonesia. This advantage means East Java has more human capital rather than other provinces in Indonesia. In the other hand, economic growth in East Java is not spread evenly. It indicates that each region has varied human capital with different conditions in health, education and standard of living. The objective of this study is to analyze empirically the effect of health, education and standard of living to economic growth in East Java. The data for this paper were obtained from Statistics – East Java (Jawa Timur) and consisted of 38 regencies/municipalities. This paper aims to present the use of panel data analysis that use random effect model in order to assess economic growth under the influence of determinant factors. Its main determinant factors are health, education and standard of living. This study finds that health, education and standard of living affect the economic growth in East Java. Implications of the study are the increase of education and standard of living can be encouraged the economic growth in East Java.

Keywords

East Java; economic growth; human capital

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  1. Afaqa Hudaya  Department of Economics, Universitas Diponegoro, Indonesia
  2. F Firmansyah  Department of Economics, Universitas Diponegoro, Indonesia