Analysis of Human Capital, Infrastructure Spending Allocations, Economy Openness, and Formation of Fixed Capital on Economic Growth in Indonesia

Abstract

This study entitled Analysis Influence of Quality of Human Capital, Gross Fixed Capital Formation, Infrastructure Expenditure Budget Allocation, and the economy openness on Indonesia's Economic Growth aims to analyze the influence of these macroeconomic variables on Indonesia's economic growth both in short and long term. The method used in this study is a secondary data analysis method by using quantitative error correction correction mechanism (ECM), cointegation test and Granger causality test. The result showed During analysis period 2000-2018 Indonesia's economic growth in the short term was positively and significantly affected by the quality of human capital and economic openness, while in the long run, 4 macroeconomic variables such as the quality of human capital, gross fixed capital formation, allocation of infrastructure spending and economic openness significant effect on economic growth, although two of them namely gross fixed capital formation and the allocation of infrastructure spending negatively and significantly.