Does More Spending on Education Matter to Human Capital Formation? Study Case of Bengkulu Province, Indonesia

https://doi.org/10.22146/jkap.33427

Nurfitriani Nurfitriani(1*), Romi Bhakti Hartarto(2)

(1) Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta
(2) Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta
(*) Corresponding Author

Abstract


Based on Statistics Indonesia (BPS), Indonesia will face a demographic bonus era during 2020-
2035. That implies that the number of productive-age population will be higher than elderly people
and children (dependents). This phenomenon offers an opportunity due to a lower dependency
burden. However, the situation could be catastrophic if the government is not ready to equip the
productive age population with necessary skills. The objective of this study is to determine whether
or not higher spending on education has positive influence on human capital formation in Bengkulu
Province. The research used panel data analysis of ten regions in Bengkulu Province for the 2010-
2014 periods. Research results showed that spending on education does not have significant impact
on human capital development, while women empowerment and infrastructure have positive effect
on human capital. Our results imply that more spending on education does not matter if it is not
supported by quality infrastructure that makes education facilities accessible.

Keywords


human capital; HDI; health; education; infrastructure

Full Text:

PDF


References

ACDP, I., 2013. Up to IDR 11.7 Trillion Undisbursed Teacher Incntive.
Angirst, J. & Lavy, V., 1999. Using Maimonide's rule to estimate the effect of class size on scholastic achievement. Quarterly journal of economics, 114(2), pp. 533-575.
Annabi, N., Harvey, S. & Lan, Y., 2007. Public expenditures on education, human capital and growth in Canada: an OLG model analysis.
Bloom, David, E., David, C. & Jaypee, S., 2003. The Demographic Dividend: A new Perspective on the Economic Consequences of Population.
Effendi, S., 1996. Meningktkan Kemampuan Kelembagaan Untuk Mendukung Pembangunan Kualitas Manusia: Suatu Perspektif Administrasi Negara. Jurnal Kebijakan Administrasi Publik, 1(1), pp. 29-43.
Hayes, A. & Setyonaluri, 2015. Taking Advantage of the Demographic Dividend in Indonesia: A Brief Introduction to Theory and Practice. Policy Memo of UNFPA.
Kustoharjo, H. & Kim, D., 2011. Infastructure and human development: The case of Java, Indonesia. Journal of the Asia Pacific Economy, 16(1), pp. 111-124
Leung, C. & Meisen, P., 2005. How electricity consumption affects social and economic developmentby comparing low, medium and high human development countries.
Lokhsin, M. & Yemtsov, R., 2005. Has Rural Infrastructure Rehabilitation in Georgia Helped the Poor?. The Wold Bank Economic Reviw, 19(2), pp. 311-333
Lucas, R., 1988. On the Mechanics od Economic Development. Journal of Monetary Economics, Volume 22, pp. 3-42.
Maitra, B. & Mukhopadhyay, 2012. Public Spending on Education, Health Care and Economic Growth in Selected Countries of Asia and the Pacific. Asia-Pacific Development Journal, Volume 19.
Mason, A., 2005. Demographic transitions and demographic dividens in developed and developing countries. Proceedings of the United Nations Expert Group Meeting on Social and Economic Implications of Changing Population Age Structures, pp. 81-101.
Nayak, P. & Mahanta, B., 2009. Women Empowerment in Assam. PCC Journal of Economics and Commerce, 6(6), pp. 61-74.
Neubauer, E., 2015. Human Development Index (HDI) and the Role of Women in Development.
Otega, O., Salleh, D. & Din, B., 2015. Infrastructure and Human Development in Nigeria: A Study of the South-South Geo Political Zone. IOSR Journal of Humanities and Social Science, 20(9), pp. 65-73.
Razmi, M., Abbasian, E. & Mohammadi, S., 2012. Investigating the Effect of Government Health Expenditure on HDI in Iran.
Sapkota, J. B., 2015. Infrastructure Access and Human Development: Cross-Country Evidence and Post-1015 Development Strategies. Journal of Globalization Studies.
Sulistyastuti, D. R., 2007. Pengarusutamaan MDGs dalam pembangunan Kualitas Manusia. Jurnal Kebijakan dan Administrasi Publik, 11(2), pp. 159-186.
Syakdiah, 2005. Pendanaan Pendidikan di Indonesia. Jurnal Kebijakan dan Administrasi Publik, 9(2), pp. 109-122.
Tomas, V., 2011. National Competitiveness and Expenditure on. Journal of Competitiveness,  Issue 2, pp. 3-10.
Widoyoko, J., 2010. The Education Sector: The fragmentation and adaptability of corruption. In: The State and Illegality in Indonesia. s.l.:s.n.
Yefriza, 2014. Managing Public Health Expenditue in Indonesia. Bulletin of Indonesian Economic Studies, Volume 51.



DOI: https://doi.org/10.22146/jkap.33427

Article Metrics

Abstract views : 381 | views : 318

Refbacks

  • There are currently no refbacks.




Copyright (c) 2018 JKAP (Jurnal Kebijakan dan Administrasi Publik)

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright of JKAP (Jurnal Kebijakan dan Administrasi Publik) ISSN 0852-9213 (print), ISSN 2477-4693 (online)

Gedung MAP FISIPOL UGM, Kampus FISIPOL UGM Unit II

Jl. Prof. Dr. Sardjito, Sekip, Yogyakarta, 55281,

Phone: 0274-563825

Fax: 0274-589655
Email: igpa@ugm.ac.id