THE EFFECT OF HUMAN CAPITAL AND HUMAN CAPITAL SPILLOVER ON ECONOMIC GROWTH

Sodik Dwi Purnomo, Istiqomah Istiqomah, Suharno Suharno

Abstract


The economic growth of DKI Jakarta Province is the highest among provinces on Java. Economic growth is among others, determined by the quality of human resources and supply of labor. Workers include those originate in the region itself or migrate from other regions. This study aims to analyze the effect of average years of schooling, life expectancy, number of workforce, and number of in-migrants on the economic growth of DKI Jakarta Province. Time series data during 2000-2018 were analyzed using multiple linear regression with Ordinary Least Squares (OLS) model. The results showed that the independent variables have positive significant effect on the economic growth. This finding implies the importance of improving the quality of human resources including education and health, and the need for policy improvement regarding in-migration, in term that not all people from various educational backgrounds move to the DKI Jakarta Province, so as to promote economic growth.


Keywords: 1 Economic Growth  2 Human Capital  3 Human Capital Spillovers


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