Effect of Health, education, investment and Unemployment on GDP per Capita in Indonesia

Abstract

The process of sustainable economic development is reflected in the development of per capita gross domestic product (GDP per capita). This study aims to determine the effect of health, education, investment and unemployment on GDP per capita in Indonesia. The variables used are gross domestic product per capita, average length of schooling, life expectancy, foreign investment and open unemployment rate. This research is motivated by the inequality of GDP per capita in Indonesia. This research uses panel data regression method and random effect model (REM). This study uses secondary data from the Central Bureau of Statistics (BPS). This study uses data for 2015-2020 in 34 Indonesian provinces. The results showed that the average length of schooling, life expectancy, foreign investment and the open unemployment rate had a significant effect on GDP per capita in Indonesia. The policy implication of this research is that in formulating policies in the context of welfare improving   (GDP per capita) the government should increase subsidies for aspects of education, health and job creation.