Measuring The Contribution of Investment, Export and Internet Usage on Welfare: Indonesian Case Study

Ira Febriana Sari(1*),

(1) Universitas Diponegoro
(*) Corresponding Author




DOI: https://doi.org/10.26858/ja.v9i2.40598

Abstract


This study aims to investigate the influence of investment, exports, and the internet usage on people's welfare, as measured by Regional GDP (RGDP) per capita and the Human Development Index (HDI). The estimation technique employed is Fixed Effect Model with path analysis approach applied to 34 provinces in Indonesia for the period of 2016-2020. The finding suggests that local government spending, exports, and internet use have a positive and significant effect on the RGDP per capita of which act as intervening variable, thus those three variables are indirectly affect HDI. Furthermore, RGDP per capita, local government spending, and investment are simultaneously have a positive and significant effect on HDI. However, according to t-statistic result, the impact of FDI is not significant statistically. This is possibly due to the FDI schemes in Indonesia of which constitute as non-project investment, where technology spillover is considered minimum, and capital gains tend to be savored by its beneficial owner in foreign countries.

Keywords


Human development index, internet, government spending, fdi, investment, export, regional GDP.

Full Text:

PDF

References


Anand, S., & Sen, A. (2000). The Income Component of the Human Development Index. Journal of Human Development, 1(1), 83–106. https://doi.org/10.1080/14649880050008782

Badan Pusat Statistik (BPS). (2021, November). Indeks Pembangunan Manusia (IPM) Tahun 2021. Berita Resmi Statistik, 87/11/Th. XXIV.

Ejemeyovwi, J. O., Osabuohien, E. S., Johnson, O. D., & Bowale, E. I. K. (2019). Internet Usage, Innovation and Human Development Nexus in Africa: the Case of ECOWAS. Journal of Economic Structures, 8(15). https://doi.orAdeniran, A. (2018). Assessment of Water Quality in Slum Area Ibadan. Hydrology: Current Research, 09(01). https://doi.org/10.4172/2157-7587.1000296

Anand, S., & Sen, A. (2000). The Income Component of the Human Development Index. Journal of Human Development, 1(1), 83–106. https://doi.org/10.1080/14649880050008782

Badan Pusat Statistik (BPS). (2021, November). Indeks Pembangunan Manusia (IPM) Tahun 2021. Berita Resmi Statistik, 87/11/Th. XXIV.

Edeme, R. K. (2018). Revisiting the Economic Growth-Welfare Linkages: Empirical Evidence from Nigeria. Asian Themes in Social Sciences Research, 1(1). https://doi.org/10.33094/journal.139.2018.11.28.33

Ejemeyovwi, J. O., Osabuohien, E. S., Johnson, O. D., & Bowale, E. I. K. (2019). Internet Usage, Innovation and Human Development Nexus in Africa: the Case of ECOWAS. Journal of Economic Structures, 8(15). https://doi.org/10.1186/s40008-019-0146-2

Khasandy, Aisha, E., & Badrudin, R. (2019). Munich Personal RePEc Archive The Influence of Zakat on Economic Growth and Welfare Society in Indonesia The Influence of Zakat on Economic Growth and Welfare Society in. MPRA (Munich Personal RePEc Archive), 3(1).

Kim, D. D.-K., & Seo, J.-S. (2003). Does FDI Inflow Crowd Out Domestic Investment in Korea? Journal of Economic Studies, 30(5–6), 605–622. https://doi.org/10.1108/01443580310504462

MacDougald, Joseph. J. (2011). Internet Use and Economic Development : Evidence and Policy Implications. University of South Florida Scholar Commons: South Florida.

Medina-Smith, E. J. (2001). Is the Export-Led Growth Hypothesis Valid for Developing Countries? A Case Study of Costa Rica. In Policy Issues in International Trade and Commodities (Issue 7).

Newell, R. G., Prest, B. C., & Sexton, S. E. (2021). The GDP-Temperature relationship: Implications for climate change damages. Journal of Environmental Economics and Management, 108. https://doi.org/10.1016/j.jeem.2021.102445

Statista. (2022a). Internet Penetration Rate in Indonesia.

Statista. (2022b). Number of Internet Users in Indonesia from 2017 to 2020 with Forecasts until 2026.

Tridico, P., & Paternesi Meloni, W. (2018). Economic growth, welfare models and inequality in the context of globalisation. Economic and Labour Relations Review, 29(1). https://doi.org/10.1177/1035304618758941

UNDP. (2020). Human Development Report 2020: The Next Frontier Human Development and the Anthropocene. In UNDP: New York, NY, USA.

van den Bergh, J. C. J. M. (2022). A procedure for globally institutionalizing a ‘beyond-GDP’ metric. Ecological Economics, 192. https://doi.org/10.1016/j.ecolecon.2021.107257 g/10.1186/s40008-019-0146-2

Kim, D. D.-K., & Seo, J.-S. (2003). Does FDI Inflow Crowd Out Domestic Investment in Korea? Journal of Economic Studies, 30(5–6), 605–622. https://doi.org/10.1108/01443580310504462

MacDougald, J. J. (2011). Internet Use and Economic Development : Evidence and Policy Implications. University of South Florida Scholar Commons: South Florida.

Medina-Smith, E. J. (2001). Is the Export-Led Growth Hypothesis Valid for Developing Countries? A Case Study of Costa Rica. In Policy Issues in International Trade and Commodities (Issue 7).

Statista. (2022a). Internet Penetration Rate in Indonesia.

Statista. (2022b). Number of Internet Users in Indonesia from 2017 to 2020 with Forecasts until 2026.

UNDP. (2020). Human Development Report 2020: The Next Frontier Human Development and the Anthropocene. In UNDP: New York, NY, USA.


Article Metrics

Abstract view : 114 times | PDF view : 20 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Ira Febriana Sari

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Article copyright © to the Authors

Jurnal Ad'ministrare: Jurnal Pemikirian Ilmiah dan Pendidikan Administrasi Perkantoran has been Indexed and Abstracted by:

 

Jurnal Ad'ministrare: Jurnal Pemikirian Ilmiah dan Pendidikan Administrasi Perkantoran articles published by the Program Studi Pendidikan Administrasi Perkantoran Universitas Negeri Makassar, and have been peer-reviewed before publication. Read our Plagiarism Policy and the use of this site signifies your agreement to the Terms of Use.

This is a website that publishes an open-access article distributed under Licensed. This work is licensed Creative Commons License under a Creative Commons Attribution 4.0 International License. Website layout and design copyright © by Program Studi Pendidikan Administrasi Perkantoran Universitas Negeri Makassar