Dynamics of Growth, Poverty and Human Capital: Evidence from Indonesian Sub-National Data

Indunil De Silva and Sudarno Sumarto ()

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this study is twofold. First, despite the vast empirical literature on testing the neoclassical model of economic growth using cross-country data, very few studies exist at the sub-national level. We attempt to fill this gap by utilizing panel data over the 2002-2012 period, a modified neoclassical growth equation, and a dynamic panel estimator to investigate the effect of both health and education capital on economic growth and poverty at the district level in Indonesia. Secondly, whilst most existing cross-country studies tend to concentrate only on education as a measure of human capital, we expand the analysis and probe the effects of health capital as well. As far as we are aware, no study has done a direct and comprehensive examination of the impacts of health on growth and poverty at the sub-national level. Thus this study is a premier at the sub-national level, and our findings will be particularly relevant in understanding the role of both health and education capital in accelerating growth and poverty reduction efforts.

Keywords: Neoclassical Growth; Poverty; Human Capital; Health; Education; Dynamic Panel (search for similar items in EconPapers)
JEL-codes: H7 I3 O4 (search for similar items in EconPapers)
Date: 2014-01-16, Revised 2014-11-18
New Economics Papers: this item is included in nep-gro, nep-ino and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Economic Development Number 2, June 2015.40(2015): pp. 1-48

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Related works:
Journal Article: DYNAMICS OF GROWTH, POVERTY AND HUMAN CAPITAL: EVIDENCE FROM INDONESIAN SUB-NATIONAL DATA (2015)
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