Government expenditure on education, health, and minimum wages as determinants of the human development index: A study of selected provinces in Indonesia

Abstract

The purpose of this study was to examine the impact of three key factors—government expenditure on education, health, and minimum wages—on the Human Development Index (HDI) across five selected provinces in Indonesia. The research employed a panel data analysis method, covering the period from 2007 to 2016. The study focused on five provinces in Indonesia: Bangka Belitung, Lampung, Bengkulu, South Sumatra, and Jambi. Findings indicate that while government spending on education and health has a positive yet statistically insignificant effect on HDI, minimum wages have a significant positive influence. Overall, the average HDI across these provinces remains relatively consistent, ranging from 68% to 70%, with no substantial disparities. However, among the five provinces, Jambi and Bangka Belitung exhibit higher HDI levels compared to the others