The Role of Human Capital Investment in Poverty Alleviation and Improvement of Indonesian Human Performance in Dignified Economic Independence

Abstract

This research studies the role of human capital investment through the mechanism of improving education and health services in efforts to alleviate poverty and increase economic independence with dignity in the form of improving the performance of Indonesia's human resources which is reflected in Indonesia's economic growth. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We find that investment in education and investment in health is positively related to economic growth. And, poverty is negatively related to economic growth. This indicates that human capital investment in Indonesia is able to promote economic growth and alleviate poverty in Indonesia.