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All Journal INFO ARTHA JURNAL PERSPEKTIF BEA DAN CUKAI JABI (Jurnal Akuntansi Berkelanjutan Indonesia)
Nur Indah Lestari
Polytechnic of State Finance STAN
Economics, Econometrics & Finance Education

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THE EFFECT OF GOVERNMENT EDUCATION SPENDING ON ECONOMIC GROWTH THROUGH SCHOOL ENROLLMENT IN INDONESIA Lestari, Nur Indah
JURNAL INFO ARTHA Vol 3 (2016): Edisi Maret
Publisher : Polytechnic of State Finance STAN

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1219.699 KB) | DOI: 10.31092/jia.v3i0.45

Abstract

This paper examines the effect of government spending on education on growth as an indirect process through enrollment rate, specifically in Indonesia. Using a panel data set of 26 provinces from 2000 to 2010 and applying fixed effect approach of panel regression, we find that government spending on education has a positive relationship with enrollment with one-year lag; also, the data show that enrollment affect growth significantly. By enacting the chain rule, government spending on education has a positive effect in economic growth indirectly. Together, these findings suggest that raise government spending on education can increase enrollment rate and enhance economic growth. 
Co-Authors Hutomo Nurman Satrio,