THE IMPACT OF GOVERNMENT EXPENDITURES IN EDUCATION AND INTERNET PENETRATION ON GDP PER CAPITA IN INDONESIA

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Date
2020
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Journal ISSN
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Solid State Technology Volume: 63 Issue: 3
Abstract
Government expenditure on education and health has important role to play in the form of stimulating the economy. Internet penetration as a part of the Information and Communication Technology (ICT) is also believed to be a significant contributor towards social and economic development. This study examined the trends as well as effects of education government expenditure, health expenditure, and internet penetration on the per capita GDP in Indonesia using econometrics model with Ordinary Least Square (OLS) and Error Correction Model (ECM) methods. The findings revealed that government education expenditure had positive effect on GDP per capita in the long-run and in the short run. Government expenditure on health was found to be insignificantly related to GDP per capita in the long run and in the short run. Internet penetration had positive effect on GDP per capita in long run and insignificantly related to GDP per capita in the short run.
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Keywords
Government Expenditures on Education, Internet Penetration, GDP per capita
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