International Academic Journal of Entrepreneurship

ANALYSIS OF WELFARE IN INDONESIA: CASE STUDY IN 2008-2017

*Saparuddin Mukhtar
Department Economics, UNM, Indonesia, Indonesia, Indonesia

*Corresponding Author:
Saparuddin Mukhtar
Department Economics, UNM, Indonesia, Indonesia, Indonesia
Email:saparuddin@unj.ac.id

Published on: 2019-01-21

Abstract

The purpose of the study was to analyze the factors of natural resources, income per capita, infrastructure, education, institutions and population against inequality between regions and welfare in Indonesia. This study uses panel data regression analysis. This study analyzes secondary data consisting of 33 provincial cross section data and 10 years time series data (2008-2017). The results of the study found inequality between regions in Indonesia with different intensities. Factors of natural resources, income per capita, infrastructure, education, wealth and population have a positive and significant effect on inequality between Factors of natural resources, income per capita, infrastructure, education, wealth and population have a positive and significant effect on inequality between regions. Furthermore, 2% of the inequality variables between regions affect the level of welfare and the rest are influenced by natural resources, per capita income, infrastructure, education, institutions and population.

Keywords

Economic development; Inequality, Welfare, Multi-regression

Introduction

The endogenous growth theory explains that one of the inputs to economic growth is human (Schultz 2003) [1] puts humans on par with physical capital such as machinery and technology. The theory explains that humans have an important role in the economy. Human capital emphasizes education, science, health and skills as capital that is very important for humans. Indicators for measuring human capital can be proxied by the Human Development Index (HDI) or the Human Development Index (HDI).