The Impact of Government Expenditures in Education and Internet Penetration on GDP Per Capita in Indonesia

Authors

  • Farida Nursjanti*, Lia Amaliawiati

Abstract

Government expenditure on education and health has important role to play in the form of
stimulating the economy. Internet penetration as a part of the Information and Communication Technology
(ICT) is also believed to be a significant contributor towards social and economic development. This study
examined the trends as well as effects of education government expenditure, health expenditure, and internet
penetration on the per capita GDP in Indonesia using econometrics model with Ordinary Least Square
(OLS) and Error Correction Model (ECM) methods. The findings revealed that government education
expenditure had positive effect on GDP per capita in the long-run and in the short run. Government
expenditure on health was found to be insignificantly related to GDP per capita in the long run and in the
short run. Internet penetration had positive effect on GDP per capita in long run and insignificantly related to
GDP per capita in the short run.

Published

2020-10-16

Issue

Section

Articles