Economic: Journal Economic and Business
Vol. 5 No. 1 (2026): ECONOMIC: Journal Economic and Business

The influence of government spending in the education, health and infrastructure sectors on economic growth and the human development index in North Sumatra province for the period 2015–2024

Nasution, Suci Syahrovani (Unknown)



Article Info

Publish Date
20 Jan 2026

Abstract

This study aims to analyze the effect of government spending on the education, health, and infrastructure sectors on economic growth and the Human Development Index (HDI) in North Sumatra Province during the 2015–2024 period. The main issue examined is the extent to which the effectiveness of public budget allocation is able to encourage economic development while improving human quality. This study uses a quantitative approach with a multiple linear regression method processed using EViews 10 software, and utilizes secondary data sourced from the Central Statistics Agency (BPS) and the Directorate General of Fiscal Balance (DJPK). The results show that government spending on the health and infrastructure sectors has a significant effect on economic growth and the HDI, while spending on the education sector shows a positive but not significant effect in the short term. Simultaneously, the three expenditure sectors have a significant effect on both development indicators with a strong coefficient of determination value, namely above 75%. This finding emphasizes the importance of balanced budget allocation between the social and physical sectors to encourage inclusive and sustainable regional development.

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Journal Info

Abbrev

ejeb

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

ECONOMIC: Journal Economi and Business yang diterbitkan oleh Lembaga Riset Mutiara Akbar, Medan, Indonesia merupakan jurnal akses terbuka yang dapat digunakan sebagai media interaksi bagi seluruh cendikiawan di berbagai bidang Ekonomi dan Bisnis baik itu Karya Ilmiah kajian pustaka maupun ...