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Human Capital Spillovers and Human Development Index in Yogyakarta Special Region and Central Java

Joko Susanto and Didit Welly Udjianto
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Joko Susanto: Faculty of Economics and Business, UPN “Veteran” Yogyakarta, Yogyakarta Special Region, Indonesia
Didit Welly Udjianto: Faculty of Economics and Business, UPN “Veteran” Yogyakarta, Yogyakarta Special Region, Indonesia

International Journal of Innovation and Economic Development, 2019, vol. 5, issue 2, 57-64

Abstract: This study analyzes the spillover of human capital in the Yogyakarta Special Region and Central Java. The research data includes the Human Development Index (HDI), capital, the ratio of college graduate workers, and the number of medical personnel in 2017 published by the Central Bureau of Statistics (BPS). This study uses a Spatial Regression analysis that includes elements of human capital spillover estimated by Geoda software. The results showed that there was a spillover of human capital between regencies/cities in Yogyakarta Special Region and Central Java. Lambda coefficient value, in Spatial Error Model (SEM), amounting to 0.5074 indicates that the Human Development Index (HDI) score of each regency/city will get an influence of 0.5074 multiplied by the HDI value of the neighboring regency/city. The capital variable is significant and exhibits that a rise in the HDI score will follow an increase in the number of capital. However, the ratio of college-educated worker and medical personnel is not significant. Due to the linkages between these provinces, the regency government and the provincial government should synergize each other, especially in the formulation of economic policies.

Keywords: Human capital; Spillover; Human development index (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:5:y:2019:i:2:p:57-64

DOI: 10.18775/ijied.1849-7551-7020.2015.52.2004

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