The Effect of Human Capital Investment on Regional Economic Growth in Gorontalo Province

Joice Machmud; Nur Eng Mokodompit

doi:10.63922/ijbqr.v4i03.5648

Joice Machmud Universitas Muhammadiyah Gorontalo
Nur Eng Mokodompit Universitas Muhammadiyah Gorontalo

DOI: https://doi.org/10.63922/ijbqr.v4i03.5648

Keywords: Human Capital Investment, Regional Economic Growth, Education Expenditure, Health Expenditure, Labor Productivity

Abstract

Human capital investment has become one of the key drivers of regional economic growth because it improves labor productivity, educational quality, and public welfare. This study aims to examine the effect of human capital investment on regional economic growth in Gorontalo Province. A quantitative approach was employed using annual secondary time-series data obtained from the Central Bureau of Statistics (BPS) and regional government reports covering the period 2014-2025. The variables analyzed included education expenditure, health expenditure, labor productivity, and Gross Regional Domestic Product (GRDP) growth. Data were analyzed using multiple linear regression. The results reveal that education expenditure, health expenditure, and labor productivity all have positive and statistically significant effects on regional economic growth. Among these variables, labor productivity exhibits the strongest influence, followed by education expenditure and health expenditure. The regression model explains 65.9% of the variation in regional economic growth, indicating that human capital investment plays a substantial role in regional economic performance. These findings provide empirical evidence that strengthening investment in education, healthcare, and workforce productivity constitutes an effective strategy for promoting sustainable regional economic growth and supporting evidence-based regional development policies in Gorontalo Province

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