The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island

Java Island accounts for more than half of Indonesia’s gross domestic product (GDP), hence it is where the majority of economic activities are concentrated, even though mostly of those major contributions are from certain cities. However, the quality of education and health shown by average years of...

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Main Authors: Sang Aji Kharismarizky Susilo, Banatul Hayati, Amin Pujiati
Format: Article
Language:English
Published: Muhammadiyah University Press 2023-03-01
Series:Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
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Online Access:https://journals2.ums.ac.id/index.php/jep/article/view/9586
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author Sang Aji Kharismarizky Susilo
Banatul Hayati
Amin Pujiati
author_facet Sang Aji Kharismarizky Susilo
Banatul Hayati
Amin Pujiati
author_sort Sang Aji Kharismarizky Susilo
collection DOAJ
description Java Island accounts for more than half of Indonesia’s gross domestic product (GDP), hence it is where the majority of economic activities are concentrated, even though mostly of those major contributions are from certain cities. However, the quality of education and health shown by average years of schooling and life expectancy at birth in Java Island is unevenly distributed when compared with economic growth. This research aims to analyze the causalities and effects of economic growth, education, and health using simultaneous equations models on panel data that consists of 34 cities in Java Island spanning from 2015 to 2019, which are decomposed into three income classifications. Results indicate positive and significant effect from education toward economic growth on every income level. Health instead only brings positive and significant effect toward economic growth in high-income cities. Economic growth affects education positively in upper-middle and lower-middle income cities, and affects health positively only in upper-middle income. Ultimately, the relationship between education and health shows that they have positive and significant effects on each other and are consistent across all income groups.
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issn 1411-6081
2460-9331
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publisher Muhammadiyah University Press
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series Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
spelling doaj-art-5bbf018933ab455da304dbc175121abb2025-08-20T03:50:01ZengMuhammadiyah University PressJurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan1411-60812460-93312023-03-01243910.23917/jep.v24i1.201949649The Linkage Among Economic Growth, Education and Health: Empirical Study in Java IslandSang Aji Kharismarizky Susilo0Banatul Hayati1Amin Pujiati2Faculty of Economics and Business, Diponegoro UniversityFaculty of Economics and Business, Diponegoro UniversityFaculty of Economics and Business, Diponegoro UniversityJava Island accounts for more than half of Indonesia’s gross domestic product (GDP), hence it is where the majority of economic activities are concentrated, even though mostly of those major contributions are from certain cities. However, the quality of education and health shown by average years of schooling and life expectancy at birth in Java Island is unevenly distributed when compared with economic growth. This research aims to analyze the causalities and effects of economic growth, education, and health using simultaneous equations models on panel data that consists of 34 cities in Java Island spanning from 2015 to 2019, which are decomposed into three income classifications. Results indicate positive and significant effect from education toward economic growth on every income level. Health instead only brings positive and significant effect toward economic growth in high-income cities. Economic growth affects education positively in upper-middle and lower-middle income cities, and affects health positively only in upper-middle income. Ultimately, the relationship between education and health shows that they have positive and significant effects on each other and are consistent across all income groups.https://journals2.ums.ac.id/index.php/jep/article/view/9586economic growthhuman capitalsimultaneous equation model
spellingShingle Sang Aji Kharismarizky Susilo
Banatul Hayati
Amin Pujiati
The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
economic growth
human capital
simultaneous equation model
title The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
title_full The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
title_fullStr The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
title_full_unstemmed The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
title_short The Linkage Among Economic Growth, Education and Health: Empirical Study in Java Island
title_sort linkage among economic growth education and health empirical study in java island
topic economic growth
human capital
simultaneous equation model
url https://journals2.ums.ac.id/index.php/jep/article/view/9586
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