Abstract
This study aims to see the effectiveness of education performance in Indonesia which has been budgeted in the state budget (APBN) from 1996 to 2020. This effectiveness can be evaluated from the number of gross enrollment rates aged 15 years and over. The number of gross enrollment rates is affected by the government spending in education sector, national per capita income, and national literacy rate that is measured by the number of literacy. This study uses Auto Regression Distributed Level (ARDL) model to see the government's performance in education sector in the short term and long term. The finding of the study shows that in the short term, the government's expenditure for education sector and national literacy level supports the effectiveness of education performance. Meanwhile in the long term, literacy level supports the effectiveness of education performance.Keywords: gross enrollment rate, literacy rate, government spending, national per capita incomeJEL Classifications: I21, I22, I25DOI: https://doi.org/10.32479/irmm.10655
Highlights
A good country does not depend on the economy and natural resources, but it depends on human resources, management, and government policies that can support the development of a country (Daniele, 2011; Osibanjo and Adeniji, 2012)
GER is gross enrollment rate, GE is government expenditure in education sector, LIT is literacy measured by literacy rates, and YPC is per capita income
Root test unit Before conducting the estimation, the first step that should be done is checking whether the time series data is stationary or not by using Augmented Dickey-Fuller (ADF) and Philip Perron (PP) through all variables
Summary
A good country does not depend on the economy and natural resources, but it depends on human resources, management, and government policies that can support the development of a country (Daniele, 2011; Osibanjo and Adeniji, 2012). There were some policies that were carried out by the government to improve the quality of education in Indonesia and those were facilitating the school establishment and operation permits, giving school subsidies that were more on target, giving training for teachers, increasing the share of state budget for education by 20%, and creating education that liberates children (Alwasilah, 2013; Sukasni and Efendy, 2017; Wijaya, 2019). Teachers are prepared to fulfill the commercial and economic needs that place more emphasis on skill, creativity, and innovation owned by each individual (Foster and Yaoyuneyong, 2016; Serdyukov, 2017) Those assets can help the government in carrying out any management that has been determined, especially in state and private companies
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