FINANCIAL INCLUSION AND HUMAN CAPITAL INVESTMENT IN URBAN AND RURAL: A CASE OF ACEH PROVINCE

Nanda RAHMI

Assistant Professor at the Departement of Economics, Fakultas Ekonomi dan Bisnis, Universitas Syiah Kuala, Banda Aceh, Indonesia

nanda_rahmi84@unsyiah.ac.id

ALIASUDDIN

Associate Professor at the Department of Economics, Fakultas Ekonomi dan Bisnis, Universitas Syiah Kuala, Banda Aceh, Indonesia

aliasuddin@unsyiah.ac.id

Abstract

this study is to analyze the effects of financial inclusion and other variables on human capital investment in urban dan rural region of Aceh Province by using pooled regression model with sample size total of 800 households.   The results show that financial inclusion and income have a positive and significant effect on human capital investment, whereas family size has negative and significant.  Furthermore, male and urban have bigger effects on human capital investment than female and rural region, respectively.   Meanwhile, age has a bell-shaped to human capital investment indicates that the higher age smaller human capital investment.  The last, the average of years of schooling in urban and rural regions is nine-year means the education level of these regions is junior high school.   It is recommended that government should encourage banking to increase their services to a rural area in order to increase human capital investment.

Keywords: Financial Inclusion, Human Capital Investment, Aceh Province, Indonesia

JEL classification: G5, I210, D1, J170

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DOES HUMAN CAPITAL INVESTMENT MATTER FOR GROWTH? EVIDENCE FROM INDONESIA DURING THE FISCAL DECENTRALIZATION ERA

Losina PURNASTUTI

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
losina_purnastuti@uny.ac.id
(Corresponding author)

Bambang SUPRAYITNO

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
bambang_s@uny.ac.id

SUGIHARSONO

Faculty of Economics
Yogyakarta State University Kampus Karangmalang Yogyakarta 55281 Indonesia
sugiharsono@uny.ac.id

Abstract

The purpose of this study is to investigate the role of regional government expenditure, workers’ education level, and government expenditure for health and education sector in economic growth by using secondary data published by National Bureau of Statistics Indonesia. Panel data estimation approach was adopted to analyze the data. The result of the study shows that education contributes significantly to the improvement of labor productivity. Other findings indicate that the population has positive impacts on various aspects of human development and labor productivity while the total area owned by the local goverment has no effect on both of the two aspects aforementioned. It implies that human resource is an essential component for economic growth and for human development itself.

Keywords: Human Capital Investment, Government Expenditure, Fiscal Decentralization.

JEL classification: H51, H52, H72, H75
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