THE EFFECT OF LOCAL GOVERNMENT EXPENDITURES IN THE EDUCATION SECTOR AND GDP REGIONAL ON HDI IN INDONESIA IN 2015-2018

Abstract

Human resource-based economic development is one of the priorities implemented in Indonesia because Indonesia has a large population potential. Indonesia ranks in the position of the five lowest countries in its human development index in ASEAN. This study aims to determine the influence of government spending in the education sector and GDP Regional in increasing HDI in Indonesia in 2015-2018. This study used the method of multiple regression analysis panel data with a total sample of 26 provinces in Indonesia with 104 observation units. In this study, it was found that local government spending in the education sector had a positive and significant effect on HDI and GDP Regional also had a positive and significant influence in increasing HDI in Indonesia in 2015-2018.