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Muhammad Ali Mustofa
Master of Science in Economics, Gadjah Mada University

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Improving Human Development in Asia: Do Government Expenditure and Good Governance Matter? Muhammad Ali Mustofa; Presnanda Bijak Satria
Jurnal Ekonomi dan Pembangunan Vol. 32 No. 2 (2024): In Progress
Publisher : BRIN Publishing (Penerbit BRIN)

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Abstract

The low human development index in the Asian region requires the role of Government through budget spending policies and good governance. This study aims to analyze the effect of Government spending and good governance on the human development index and determine its ranking based on the new calculation model. The data used is panel data with a combination of 29 countries in Asia from 2010 to 2021. The variables used are the human development index, Government spending on education and health, good governance, GDP Per Capita, Unemployment, Population, Life Expectancy, ICT, and average and expected years of schooling used to rank countries. The analysis technique used is panel data regression with a fixed effect approach. The results show that government spending on education significantly affects the human development index, which has a positive relationship. Likewise, Government spending in the health sector significantly affects the human development index but has a negative relationship. Different results have shown that good governance does not significantly affect the human development index. As for the calculation results with the geometric mean, Singapore has the highest human development, while Pakistan and Myanmar have the lowest human development in Asian countries. 
Co-Authors Presnanda Bijak Satria