Human Development Index and Local Government Performance: Evidence from Central Java Province, Indonesia

Abstract

This research examines the relationship between the human development index (HDI) and local government performance. Further, our study divided the HDI into life expectancy, education, and per capita income. The measurement of local government performance was done through evaluation of local government performances from the Ministry of Home Affairs, Republic of Indonesia. The current study sample consists of the local government in Central Java Province during the 2014-2019 period. There are 35 local governments in Central Java Province, with 210 observations. The result of the study shows that HDI has a positive effect on local government performance. The higher HDI index has improved the performance of local government. Further, life expectancy and income per capita positively affect the local government’s performance. On the other hand, education has no significant effect on the local government’s performance. This study also investigates the effect of HDI on future local government performance. The result of the study also confirms the expectation that HDI has improved the next year’s local government performance. It is expected that the local government will give more attention to improving the HDI index, thus, improving the local government’s performance.
 Keywords: human development index, local government, performance, life expectancy, income per capita