Journal of Regional Economics Indonesia
Vol. 7 No. 1 (2026): February 2026

Does Human Development Translate into Inclusive Welfare? Evidence from Regional Economic Dynamics in Indonesia

Miharsih, Anik (Unknown)



Article Info

Publish Date
27 Feb 2026

Abstract

The relationship between human development and inclusive welfare remains a central issue in regional development, particularly in emerging economies where improvements in the Human Development Index (HDI) do not always translate into equitable socioeconomic outcomes. This study examines the linkage between HDI-related public investment and welfare dynamics in Jombang Regency, Indonesia. Using a quantitative approach based on time-series secondary data (2010–2024), the study employs polynomial regression and correlation analysis to evaluate the effects of education spending, health spending, wages, and demographic dynamics on poverty and household consumption. The results show that health expenditure has a strong negative association with poverty reduction, while education spending exhibits a nonlinear (U-shaped) relationship, indicating potential inefficiencies in translating educational investment into welfare outcomes. In addition, wages strongly influence household food consumption, whereas population growth demonstrates a diminishing marginal effect on consumption dynamics. These findings suggest that improvements in human development must be integrated with labor market absorption and regional economic structures to generate inclusive and sustainable welfare outcomes.

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Journal Info

Abbrev

jrei

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal of Regional Economics Indonesia welcomes studies on the themes of development economics, especially those concerning four main issues, namely: (i) regional finance; (ii) banking; (iii) human resources; and (iv) regional / spatial economics. These four issues are obtained through ...