Human Development Index: The Impact of Human Resources Investment in Education and Regional Revenue

Abstract

Human investment in education and local revenue provides a positive trend towards the development index in West Sumatra Province. For this reason, it is necessary to study the extent to which human investment in education and local revenue can explain the positive trend towards the human development index. This research method is quantitative with a longitudinal research design. The data is obtained from the Report of the Central Statistics Agency of West Sumatra for 2010-2019. Analysis of research data using panel data regression. The results of the study reveal that there is a positive influence between human investment in education and local revenue on the human development index. Heads of districts/cities in West Sumatra need to plan investment in human capital expenditures in the education sector well in order to increase an educated workforce that can be absorbed by the labor market and seek to increase local revenue so as to encourage positive trends in economic growth and directly increase the human development index by increase the allocation of education funds from the regional expenditure budget. Keywords: Human development index; Human investment in education; locally-generated revenue.