Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia

Research Article

Determinants of Human Development Index: Case Study of Provinces in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.3-8-2021.2315091,
        author={Syafri,  Sumiyarti and Firdayeti  Firdayeti and Khoriro  Handayani},
        title={Determinants of Human Development Index: Case Study of Provinces in Indonesia},
        proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia},
        publisher={EAI},
        proceedings_a={LEPALISSHE},
        year={2022},
        month={1},
        keywords={human development index; panel data regression model; indonesia},
        doi={10.4108/eai.3-8-2021.2315091}
    }
    
  • Syafri, Sumiyarti
    Firdayeti Firdayeti
    Khoriro Handayani
    Year: 2022
    Determinants of Human Development Index: Case Study of Provinces in Indonesia
    LEPALISSHE
    EAI
    DOI: 10.4108/eai.3-8-2021.2315091
Syafri, Sumiyarti1,*, Firdayeti Firdayeti1, Khoriro Handayani1
  • 1: Faculty of Economics and Business, Trisakti University
*Contact email: syafri@trisakti.ac.id

Abstract

The purpose of this study is to analyze the factors that influence human development index at the provincial level in Indonesia. The determining factors used are the unemployment rate, poverty, inflation, original local government revenue and foreign direct investment. This study uses secondary data in the form of panel data from 33 provinces in the 2010-2019 period obtained from the Central Bureau Statistic and Bank Indonesia. The analytical method used is panel data regression model. The empirical results showed that poverty, unemployment and inflation had a negative impact on the human development index. Original local government revenue and foreign direct investment have a significant positive impact on human development index. The results of this study provide recommendations for the government to reduce unemployment, poverty and inflation rates and increase original local government revenue and encourage foreign direct investment in order to increase the human development index at the provincial level.