PENGARUH MODAL MANUSIA DAN KELEMBAGAAN T
THE EFFECT OF HUMAN CAPITAL AND INSTITUTIONS
ON ECONOMIC GROWTH OF MAGELANG CITY, 1983-2013
Rois Mustofa1 Prof. Lincolin Arsyad, Ph.D.2
Master of Economics of Development Program
Faculty of Economics and Business, Gadjah Mada University
ABSTRACT
Determination of Magelang as regional growth pole of Purwomanggung
Region based on Central Java Provincial Regulation No. 6 of 2010 on Spatial
Planning (Spatial) Central Java Year 2009 to 2029, providing a logical
consequence that Magelang has to become an anchor for the area
Purwomanggung to ensure economic growth an ongoing basis. Conditions
without natural resources, small area and low population numbers make the main
role of human capital for economic growth.
This study aims to analyze the influence of human capital to economic
growth and institutional Magelang with time series data from the years 1983 to
2013. Human capital proxy examined using the average length of school, life
expectancy and labor productivity (GDP proportion of the labor force), while the
institutional variables used dummy variables Autonomy. The method of analysis
used is the estimation of dynamic linear regression model with Engel-Grenger
ECM (Error Correction Model).
The results showed that in the short term, human capital and institutions
are not statistically significantly affect economic growth, in this case the real per
capita income. However, both these variables influence positive direction.
Productivity variable positive and significant effect in both the short term and
long term. The results of further analysis of empirical data showed that the
negative effect of the average school attainment to the real per capita income in
the long term is an effect of not absorb the entire output of formal education,
especially higher education graduates in the labor market. This indicates a lack of
job creation for graduates of higher education in Magelang and reminds us
important basic assumption that investment in human capital will be less
meaningful if full employment in the economy is not reached.
Keywords: Human Capital, Economic Growth, Per Capita Real Income,
Institutional.
1
2
Postgraduate student of Master of Economics of Development, Gadjah Mada University
Thesis Supervisor
ON ECONOMIC GROWTH OF MAGELANG CITY, 1983-2013
Rois Mustofa1 Prof. Lincolin Arsyad, Ph.D.2
Master of Economics of Development Program
Faculty of Economics and Business, Gadjah Mada University
ABSTRACT
Determination of Magelang as regional growth pole of Purwomanggung
Region based on Central Java Provincial Regulation No. 6 of 2010 on Spatial
Planning (Spatial) Central Java Year 2009 to 2029, providing a logical
consequence that Magelang has to become an anchor for the area
Purwomanggung to ensure economic growth an ongoing basis. Conditions
without natural resources, small area and low population numbers make the main
role of human capital for economic growth.
This study aims to analyze the influence of human capital to economic
growth and institutional Magelang with time series data from the years 1983 to
2013. Human capital proxy examined using the average length of school, life
expectancy and labor productivity (GDP proportion of the labor force), while the
institutional variables used dummy variables Autonomy. The method of analysis
used is the estimation of dynamic linear regression model with Engel-Grenger
ECM (Error Correction Model).
The results showed that in the short term, human capital and institutions
are not statistically significantly affect economic growth, in this case the real per
capita income. However, both these variables influence positive direction.
Productivity variable positive and significant effect in both the short term and
long term. The results of further analysis of empirical data showed that the
negative effect of the average school attainment to the real per capita income in
the long term is an effect of not absorb the entire output of formal education,
especially higher education graduates in the labor market. This indicates a lack of
job creation for graduates of higher education in Magelang and reminds us
important basic assumption that investment in human capital will be less
meaningful if full employment in the economy is not reached.
Keywords: Human Capital, Economic Growth, Per Capita Real Income,
Institutional.
1
2
Postgraduate student of Master of Economics of Development, Gadjah Mada University
Thesis Supervisor