Tag: Indonesia

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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AN URBAN ECONOMIC MODEL OF ILEGAL SETTLEMENTS IN FLOOD PRONE AREAS IN PALANGKARAYA CITY, INDONESIA -A PARTIAL EQUILIBRIUM ANALYSIS-

Indrawan PERMANA

Graduate School of Environmental and Life Science Engineering Toyohashi University of Technology

1-1 Hibarigaoka, Tempaku-Cho, Toyohashi, Aichi, 441-8580, Japan

TEL/ +81-532-44-6955  FAX/+81-532-44-6947

E-mail: permana@hse.tut.ac.jp or indrakamis@yahoo.com

and

Yuzuru MIYATA

Graduate School of Architecture and Civil Engineering Toyohashi University of Technology                                                                                      1-1 Hibarigaoka, Tempaku-Cho Toyohashi, Aichi, 441-8580, Japan, TEL/ +81-532-44-6955                                                                      FAX/+81-532-44-6947,  E-mail: miyata@hse.tut.ac.jp

Abstract

This paper presents a theoretical study regarding occupations of flood prone areas by illegal settlements in urban area of Palangkaraya city, Central Kalimantan province, Indonesia. Such unusual urban land use pattern has been observed in many urbanized cities particularly in developing countries. However, scientific explanations about the urban phenomena were not formulated yet as well as literatures on that topic are quite rare. We developed a partial equilibrium model employing bid rent approach to analyze such unusual urban land use pattern. The model incorporated flood damage rate corresponding to household`s assets introducing variants of bid rent function and bid max lot size function. Differently from other traditional urban economics models, our model depicts a reverse conclusion of land allocation particularly in flood prone areas. In the flood prone areas, the bid rent of representative low income households gets higher than that by the representative high income households hence as a result the flood prone areas are settled by low income households emerging colonies of illegal settlements within city areas.

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