THE EFFECT OF GOVERNMENT SPENDING FOR EDUCATION AND HEALTH ON HUMAN DEVELOPMENT IN INDONESIA PERIOD 1991-2011

MUTIARA, MAYANG SARI (2013) THE EFFECT OF GOVERNMENT SPENDING FOR EDUCATION AND HEALTH ON HUMAN DEVELOPMENT IN INDONESIA PERIOD 1991-2011. Diploma thesis, UNIVERSITAS ANDALAS.

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Abstract

This research empirically examines the effect of Government spending for Education and Health on Human Development in Indonesia by using annual time series data from 1991-2011. Vector Auto Regression (VAR) is the method used in this research. The Granger Causality test result show that Government Spending for education and health give positiv effect on HDI. The study concludes that in order to reap maximum benefits from human capital there is a need to formulate and implement effective economic policies related to the provision of education and health facilities to the people.The finding in this research suggests that increasing of Government Intervention to increase quality of Human Resource in Indonesia. Keyword: Government Spending for Education, Government Spending for Health, Human Development Index,VAR

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