Human Development Index and the Forming Factors: The Effect of Global Competitiveness Index in Ten ASEAN Countries

This research aims to identify and to analyze the influence of the main factors forming the Human Development Index (HDI) toward the Global Competitiveness Index (GCI). This research was conducted for the ten ASEAN countries. The analytical method used is the granger causality panel and panel data regression. Analysis of the non-hierarchical clustering panel is also used to divide the country into two clusters. The dependent variable used in this research is the Global Competitiveness Index (GCI). Independent variables used in the research are the Life Expectancy at Birth, Expected Years of Schooling, Mean Years of Schooling, and Gross National Income (GNI) per capita.Data is obtained from UNDP, UNESCO, and the World Bank from 2010-2015. This research found that HDI and its forming factors affect the level of global competitiveness. The analysis concludes that: (1) High Cluster; Brunei Darussalam, Malaysia, Singapore, Thailand and the rest are in the middle-low Cluster. (2) All of the independent variables affect the dependent variable partially.