Impacts of Rural Development on Human Development in Indonesia

Human Development Index (HDI) is a way to measure the success of human development based on a number of basic components quality of life. HDI is formed by three basic variables namely health, education and decent living standards. This study aims to identify factors that influence the Human Development Index in Central Java Province and get a model Human Development Index in Central Java province in 2008-2013. The data used in this study is a combination of cross section data and time series data are commonly called panel data, then this HDI modeling using panel data regression. There are three estimation of panel data regression model namely Common Effect Model (CEM), Fixed Effect Model (FEM) and Random Effect Model (REM). Estimation of panel data regression model used is the Fixed Effects Model (FEM). FEM estimation results show the number of health facilities, school participation rate and Labor Force Participation Rate significantly affect the HDI by generating for 93.58%. Keywords : Fixed Effect Model, panel data regression, HDI in Central Java Province

This study aims to determine the effect of free cash flow, dividends, interest expense, and firm size on capital expenditures. This study uses a sample of 68 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2019 period. The software used is Eviews version 12 with a purposive sampling method. This study uses a panel of regression data with three models, namely the common effect model, the fixed effect model, and the random effect model. After testing, the random effect model is the chosen model. The results of this study indicate that free cash flow and firm size have a positive and significant effect on capital expenditures. That is, the higher the free cash flow and the larger the size of a company, the higher the amount of capital expenditure. In addition, dividend and interest expenses have a positive and insignificant effect on capital expenditures.

The economists focused on study about the impact of health on economic performance. Health is one of important issue of human being as indicator of welfare of a nation. Health is one of human capital in every economic activity. It is very related to promote economic growth. The dezentralisation proceses in Indonesia was developed to conduct local economic development. The study of the importance of human capital to local economic growth are still needed, especially in developing countries. It is important to know the health status at the distric or city level to ensure the social welfare of the community. The purpose of this study was to estimate the influence of health on Gross Regional Domestic Product in West Java Indonesia. West Java is one of the greatest local economic development in Indonesia, because some of the city in West Java is located near the capital city of Indonesia, which is there are many industrial and manufacturing cluster. West Java also have high population dencity, and it is such as a big potential having demography bonus. The local government in West Java had many strategic programs in order to increase the public health status. West Java also has a good human development among others provinces in Indonesia. Human capital is one of vital production factors in economic. For estimation, we conducted panel data in 27 district and city in West Java during 2012-2017. Health was proxied by fertility rate, infant mortality rate, and proportion of population (> age 65). We analyzed the unbalanced panel data using three model, common effect model, fixed effect model, and random effect model. The result indicated that the both from Chow test and Hausmann test showed the fixed effect model was the best estimation. Infant mortality rate had a significant and positive impact on Gross Regional Domestic Product. It was indicated that there is a serious problem and need a solution how to decrease the infant mortality rate in West Java. There was an indication that in less-developed country exist a high infant mortality rate. It is logic, because the high human capital start from the healthy of infants. The proportion of population also had a significant impact on Gross Regional Domestic Product, it is also indicated that the local government have to manage the labor force related to the proportion of population. Since the proportion of population have an important role in supporting local economic development. Identification the proportion of population can be formulated an effective policy toward increasing health status. While the fertility rate had negative impact to Gross Regional Domestic Product. In developing country such as Indonesia, the fertility rate is one of the main target of local government policy. There are still many woman under age in Indonesia who gave birth and they were not ready yet to raise children. Some previews study found that there was an important role of health in promote the performance economic in both developed countries and less developed countries. In some cases, health status had an impact directly or indirectly on economic growth. It is important to analyzes the impact of health at the local level because during the dezentralization era, the role of regions was very crucial. The limitation of this study is developed unbalanced panel data, and did not insert the economics variable to the model. Thus, the local government should increase the quality of services of health and improve public health in West Java.

One way to measure the success or performance of a country or region in the field of human development used the Human Development Index (HDI). Human Development Index (HDI) is a composite index to measure the achievement of human development based on a number of basic components of quality of life. The purpose of this study is to determine how much Local Genuine Revenue (PAD), General Allocation Fund (DAU), Special Allocation Fund (DAK), Human Index Development (HDI) and Capital Expenditure in the Regencies/Cities of Papua Provinci for years 2009-2013, as well as determine the influence of PAD, DAU and DAK to HDI with Capital Expenditure as an intervening variable either simultaneously or partially. The method that used in this research is panel data regression using Random Effect Model (REM) with research period of year 2009-2013 using software Eviews 8.0. Total population in this research were 29 regencies/cities. By using purposive sampling, obtained sample of 24 regencies/cities. The results of this study indicate that PAD, DAU, and DAK jointly is influenced on Human Development Index with Capital Expenditure as an intervening variable. Partially, PAD is influenced of positive on HDI through Capital Expenditure, DAU is influenced of positive on HDI through Capital Expenditure, while DAK is not influenced on HDI through Capital Expenditure.

<p>Methodologically this research is based on the approach of many social scientists who argue that there is a bidirectional link: one runs from human capital development to economic growth and overall human development, when human capital helps increase national income and society development; the other runs from economic growth to human capital development, as the resources from national income are allocated to activities contributing to human capital development. The study aims to empirically verify the existence of this interaction by carrying out a correlation analysis of the human capital development level among 120 countries, assessed by the Human Capital Index, and the world's national economic development level, as demonstrated by the Global Competitiveness Index, as well as the level of development of the world's nations (societies) as demonstrated by the Human Development Index.</p>The result of the analysis empirically demonstrated a strong link between the human capital development with the country's economic (r = +0.944, p = 0.000) and national development (r = +0.882, p = 0.000) in total by all countries. Nevertheless, carrying out the correlation analysis by groups of countries, which are divided according to the calculation methodology of the Global Competitiveness Index, depending on their stage of economic development, the relationship between human capital development and nation’s development is becoming weaker in some groups of countries, with the remaining strong correlation between the development of human capital and the economic development of a state in all groups of countries. This means that only highly developed human capital can contribute to the country's economic development, and vice versa, national economic performance increases human capital development in the framework of effective development policy. On the other hand, not always a close interaction between nation’s development and human capital development can be faced, since a highly developed human capital means the quality of the developed human capital

Socioeconomic, government expenditures, and transportation infrastructures, such as roads and ports, play a critical role in the economic development of poor and deprived regions. These factors are as catalysts for increasing economic output and enhancing people’s living standards in these regions. This study of West Timor, Indonesia, aimed to examine the impact of Socioeconomic, government expenditure, road, and port infrastructure on economic growth. This study analyzed panel data from a cross-section of six regencies/municipality in the West Timor region from 2002 to 2020. The analytical method used in this research is the fixed effect model (FEM) and the random effect model (REM). We found that human development, government expenditure on personnel and capital expenditure, urbanization, and district roads positively impacted economic growth, while expenditure on goods and services has a negative impact on economic growth. In contrast to district roads, national roads adversely impact economic growth due to triggering backwash and leakage of the regional economy. Therefore, human development, government expenditure, and infrastructure development to encourage the local economy of underdeveloped areas in the country’s border areas must consider the needs of local communities in increasing their productivity.

Private investment is one of the major channels through which fiscal policy affects economic growth of a country. Endogenous growth theory for instance recognizes the effect of fiscal policy on economic growth through its impact on private investment although the impact varies with the type of fiscal policy instruments employed. Considering the significant role of fiscal policy on the development of private sector investment, this study has attempted to assess the effect of fiscal policy on private investment in developing economies by using evidence from Ethiopia. The study implemented a modified flexible accelerator model as a theoretical framework to explain the relationship between the study variables. The study applied the ARDL model to estimate the parameters. The study result revealed that disaggregated fiscal policy measures have a diverse effect on private investment. Specifically, government fiscal policy reforms and import duties have a significant crowding in effect while capital expenditure, recurrent expenditure and budget deficit have a crowding out effect. The study finding implies that government should have to reconsider its capital and recurrent expenditure in a way that positively contributes to the development of private investment.

IntroductionMonetary and fiscal policies have long been the important instruments for policy makers to achieve their macroeconomic goals like economic growth with price stability and exchange rate stability and economic development. Monetary policy is the policy used by the central bank to control the liquidity in the market which involves controlling inflation, exchange rate oscillations through various monetary instruments like CRR, SLR various interest rates and open market operations. Likewise finance ministry uses fiscal policy to achieve its objectives like economic growth and development through various fiscal tools like public revenue, public expenditure and public borrowings.According to traditional macroeconomic theories, fiscal policy is more effective in the case of fixed exchange rate system and monetary policy is more effective under flexible exchange rate system. Economists usually compare the effect of both these policies on different economies under different exchange rate regimes and different economic systems. The reason behind is both the policies are equally important to achieve major and common macroeconomic goals like economic growth (growth rate of GDP) and economic development directly or indirectly through GDP. In case of economic growth and development, fiscal policy can be applied directly and results can be obtained immediately, but monetary can be applied directly for economic growth through decreasing rates and it is difficult to apply monetary policy directly to achieve development goals. It is possible only through decreasing interest rate and its impact on investment, employment and income. Also it will take some time to achieve the development goals. That's why it is always necessary and important to test the effectiveness of fiscal and monetary policy in the economy. In order to analyses the effectiveness of macroeconomic policies on the economy; this study uses Money Supply (M1), Interest rate (R), Government expenditure (G), Taxation (T) and Exchange rates (E) for analysis.In the last few centuries countries across the world have been increasingly engaging with one another in terms of trade. The advent of mass production techniques and discovery of new technology and hence greater demand have opened up several fronts in global trade. Countries which earlier were self-sufficient became reliant on others. Much of the work in economics had an underlying assumption that the nation was a closed economy.Several new models were proposed by various eminent economists like Mundell-Fleming, Trevor Swan and other models widely followed in international macroeconomics. Globalization has only accelerated the process of higher trade between nations. The western world was the first to embrace the concept of open economy. Many Asian countries like South Korea and Singapore adopted the open economy in early 1960s. Asians giants India and China have been relatively late in adopting the open economy model. India freed the control of government over key sectors in the 1990s reforms that had restricted the interaction of India with foreign nations.Opening up of the economy brings in several benefits. However, due to limited governmental control over the functioning of the economy now it becomes difficult for the policy makers to strike a balance between governmental interference and market forces. Due to various factors, the effectiveness of a policy may or may not produce the desired effects. It becomes more important to consider the implications and the behavior of such policy actions. Analyzing the effect of macroeconomic policies under different exchange rate regimes may provide clue towards taking appropriate measures.The impacts of these decisions seem to have profound effect on several key economic parameters and hence their analysis assumes considerable significance. The present paper is structured as follows: Introduction and significance of the study are given in Section 1. …

This research discusses the great development of humans, and gender inequality on economic growth in Indonesia. The data used in this study are secondary data sourced from the Central Statistics Agency in the form of data panels and cross sections of 33 provinces in 2010-2018. The model used in this study is a multiple linear regression model. Selection of the appropriate model, used the Common Effect Model (CEM), Fixed Effect Model (FEM) and Random Effect Model (REM). From the test results, the Fixed Effect Model (FEM) model was obtained as the appropriate model to use. Regression results show that the independent variable is a positive and significant life expectancy on economic growth, while the work participation rate variable has a negative and significant effect on economic growth in Indonesia. Because the conclusion of this study is that the government must increase the budget by using the budget, making the budget used for women, because improving women's health and education increases the quality of the female workforce. Keywords : Human development, gender inequality, life expectancy, labor force participation rates, economic growth.

The Human Development Index (HDI) measures the achievement of human development based on several basic components of quality of life. HDI is built through a basic three-dimensional approach to measure the quality of life. These dimensions include life expectancy and health, knowledge, and a decent life. Stable inflation is a prerequisite for the realization of economic growth and social welfare. Different economic conditions and natural conditions make inflation between regions in Indonesia varied. This study aims to examine HDI, inflation, investment and labor on Indonesia’s economic growth. The data source used in the form of panel data that obtained from the Badan Pusat Statistik (BPS) for the 2015-2020 period. Using panel regression data with the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM) approach processed with E-Views 10. The results of this study indicate that the estimated model chosen in this study is Fixed Effect Models (FEM). The partial test shows that the HDI, CPI, and INV variables have a significant positive effect on economic growth. In contrast, the probability value of labor (L) does not have a significant effect on economic growth. Meanwhile, in the simultaneous test, the F-statistic probability value is 0.000000 < 0.05, which means that the four independent variables simultaneously affect economic growth. Furthermore, the Adjusted R-Square value is 0.0994749, which means 99% of the HDI, CPI, INV, and L variables in this study can explain the variation of economic growth variables. While the remaining 1% is explained by other variables outside the model.

Rural human resource development is a comprehensive and systematic job involving culture, market and government. It is necessary to improve human resource quality and then promote economic development through training and education. With economic innovation and development, higher requirements are put forward for peasants in terms of professional skills and comprehensive quality. China has a late start in the aspect of human resources development. There are both many opportunities and numerous barriers in market, system and policy in the utilization and development process. China should combine actual conditions in Chinese rural areas and refer to foreign excellent cases to formulate human resource development mode, serve for modernization construction and promote rapid economic development. Rural economic development and human resource development are of dialectical unity relationship. Only when human resource is developed can economic development be promoted. Meanwhile, economic development provides financial and material support for human resource development.

This study empirically investigated the effect of government expenditure on human development in Nigeria from 1981 to 2019. Government expenditure is proxied with government capital and recurrent expenditure on health, government capital and recurrent expenditure on education and government capital and recurrent expenditure on other social and community services while human development is proxied with human development index. The study employed ex-post facto research design and secondary data were utilized. The Secondary data were obtained from Central Bank Statistical bulletin and United Nations development programme report of various years. The study tested for stationarity, and it was found that the variables are stationary at mixed order. Based on this, the study adopted Autoregressive Distributed Lag Model as the estimation technique. The study found that government capital and recurrent expenditure on health has weak and insignificant effect on human development. The study also revealed that government capital and recurrent expenditure on education has significant positive effect on human development in Nigeria. The study likewise revealed that government capital and recurrent expenditure on other social and community services has significant positive effect on human development in Nigeria. The study concluded that government expenditure through investment in education and other social and community services influence human capital development in Nigeria positively. Thus, the study recommended amongst others that the Nigeria government should increase funding of the education sector to meet education, scientific and cultural organization minimum requirement. Government should invest more on other social and community services.

Panel regression is a regression which is a combination of cross section and time series. To estimate the panel regression there are 3 approaches, the common effect model (CEM), the fixed effect model (FEM) and the random effect model (REM). In the CEM, the parameters were estimated using the Ordinary Least Square (OLS). In the FEM, the parameters estimated by OLS through the addition of dummy variables. At REM, error is assumed random and estimated by the method of Generalized Least Square (GLS). This study aims to analyze the factors that influence inflation in the Central Java province using panel regression. Based on test result of panel regression, the appropriate model is the CEM. The parameters of model are estimated by using OLS the cross section weights. The model show that the Consumer Price Index (CPI), Minimum Salary of City/Regency (MSCR) and the economic growth significantly effect on percentage of inflation in Central Java Province.

The issuance of Law No. 1 of 2022 as a complement to Law No. 23 of 2004 concerning financial relations between the central and regional governments. Fiscal transfer policies are becoming more selective in seeing local needs. However, this needs to be supported by good fiscal management in the regions to carry out development activities that have an impact on increasing income that is more evenly distributed between regions and communities. One of the important instruments of fiscal decentralization is the management of government spending. Therefore, the purpose of this study is to examine the relationship between government spending and per capita income in Southeast Sulawesi. The units of observation analyzed are gross regional domestic product per capita in the previous year, personnel expenditures, goods and services expenditures, capital expenditures, HDI, district and city dummy variables. The model approach in the calculation is panel data regression analysis from 2016-2020. Based on the test results, the probability (F-statistics) is obtained, the equation of income per capita the Hausman test > 0.05, then the random effect model (REM) equation is the best model choice. The results of the analysis show all independent variables have a strong relationship with the dependent variable in the model which is shown by an R-square of 0.982. Variables that show significant effect on the increase in percapita income are (𝐺𝑅𝐷𝑃𝑝𝑟𝑘(𝑡−1)), goods and services expenditure, capital expenditure and HDI, while personnel expenditure has a negative effect on per capita income for both districts and cities in Southeast Sulawesi Province.

Rural development refers to improving the quality of life and financial well-being of individuals living in remote areas.To achieve sustainable rural development, meet three criteria: economically viable, environmentally friendly, and socially acceptable. Fish farming plays an important role in rural development.Fish farming is crucial for meeting the increasing demand for seafood and makes a significant contribution to global food security.Integrating fish farming into rural development strategies presents a comprehensive approach that addresses immediate economic and nutritional needs and lays the foundation for resilient, self-sufficient communities with a vested interest in environmental conservation. This paper explores the impact of fish farming on rural economic growth and development. The study relies on both primary and secondary data. The statistical tool used for the study is regression analysis. The study revealed that fish farming can make a more positive impact on rural economic development.