DETERMINANTS OF ECONOMY AND HUMAN DEVELOPMENT: A DECADE OF PROVINCES IN INDONESIA

Baiq Dwi Indar Parwangsa, Luluk Fadliyanti, Jaka Anggara

Abstract


ABSTRACT

This study investigates how various factors affect the Human Development Index (HDI) across Indonesian provinces. It analyzes data from 30 provinces between 2013 and 2022, examining the influence of infrastructure, economic well-being (GRDP per capita), access to clean water and electricity, and unemployment and poverty rates. To account for overlapping factors, the research employs panel data regression with specific techniques to address multicollinearity. The results show that infrastructure investment and economic growth (GRDP per capita) significantly improve provincial HDI. This underlines the importance of prioritizing infrastructure development and inclusive economic strategies to achieve a better overall quality of life for Indonesians.

Keywords: Human Development Index, Infrastructure, Indonesia, Ordinary Least Squares, Principal Component Analysis.


References


REFERENCES

Azim, N. A, et al (2022). Determinan Ketimpangan Pembangunan Ekonomi Antarprovinsi Di Indonesia. Jurnal Riset Ilmu Ekonomi, Vol 2, Number 1, 1-16.

Herdiansah, F, et al (2022). Constructing Indonesian Composite Infrastrcuture Index using Principal Component Analysis. Journal of Indonesian Applied Economics,Vol 10, Number 2, 72-99.

Leiwakabessy, et al (2020). A Modified Human Development Index, Democracy and Economic Growth in Indonesia. Humanities & Social Sciences Reviews, Vol 8, Number 2, 732-743.

Nainggolan, et al (2022). How Determinants of the Human Development Index Impact Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE). Vol 5, Number 2, 687-700.

Nurdina, W. (2021). Infrastructure and Income Inequality in Indonesia: 2009-2017. The Journal of Indonesia Sustainable Development Planning. 129-144.




DOI: https://doi.org/10.24114/qej.v13i1.58342

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