The Effect of Government Expenditure and Human Capital on the Trend of Economic Growth in Indonesia 2014-2023

Abstract

Trend economic growth means growth that gives everyone fair access and opportunity, increases welfare and reduces inequality between groups and regions. With an effective government role in budget distribution, economic growth can be achieved. Indonesian government spending increases almost every year, along with the human development index that continues to increase, as well as spending on health and education. The type of research used is quantitative. The method used in this research is Time Series data and hypothesis testing using Partial Test (Ujit t), Simultaneous Test (F Test), and Determination Test (R2 ). The data used is secondary data with the type of time series data in the observation period, namely 2014 to 2023. Government Expenditure (X1), Human Capital (X2) and Economic Growth (Y) with Statistical Test using eviews 10 application. The results showed that partially the government expenditure variable had a negative and insignificant effect on the trend of economic growth in Indonesia, the human capital variable had a positive and insignificant effect on the trend of economic growth in Indonesia. While simultaneously, government spending and human capital have a positive and significant effect on the trend of economic growth in Indonesia.