Open AccessTHE CONTRIBUTION OF HUMAN CAPITAL AND STRUCTURAL CHANGE TO EAST JAVA’S ECONOMIC GROWTH:
Author(s) -
Listiono Listiono Listiono
Publication year - 2019
Publication title -
east java economic journal/east java economic journal
Language(s) - English
Resource type - Journals
eISSN - 2830-2001
pISSN - 2597-8780
DOI - 10.53572/ejavec.v3i2.41
Subject(s) - human capital , generalized method of moments , estimation , java , economics , structural change , panel data , physical capital , capital deepening , labour economics , demographic economics , monetary economics , financial capital , macroeconomics , capital formation , econometrics , economic growth , management , computer science , programming language
This paper investigates the effect of human capital and structural changes on economic growth in East Java using panel data from 38 districts/cities during 2010-2015. The estimation results using the Generalized Method of Moment (GMM) Arellano-Bond show that health and education as indicators of human capital have a positive and significant effect on economic growth. In addition, structural changes as measured by the share of labor, especially in the industrial, construction, and services sectors have a positive and significant impact on economic growth. Interestingly, this study found evidence that structural changes have a greater effect than human capital.