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

de Silva, Indunil and Sumarto, Sudarno (2014): Dynamics of Growth, Poverty and Human Capital: Evidence from Indonesian Sub-National Data. Published in: Journal of Economic Development , Vol. 40, No. Number 2, June 2015 (30 June 2015): pp. 1-48.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Neoclassical Growth, Poverty, Human Capital, Health, Education, Dynamic Panel
• Subjects: H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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