Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

Natural Resources, Human Capital and Economic Growth: Evidence from Indonesia

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311792,
        author={Dewi  Rahayu},
        title={Natural Resources, Human Capital and Economic Growth: Evidence from Indonesia},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={natural resource human capital economic growth natural resources curse hypothesis},
        doi={10.4108/eai.18-11-2020.2311792}
    }
    
  • Dewi Rahayu
    Year: 2021
    Natural Resources, Human Capital and Economic Growth: Evidence from Indonesia
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311792
Dewi Rahayu1,*
  • 1: Department of Economics and Development Studies, Lambung Mangkurat University, Indonesia
*Contact email: dewirahayu@ulm.ac.id

Abstract

Empirical evidence indicates that natural resource abundance contributes significantly to economic growth in natural resource-rich countries. Meanwhile, the literature on economic growth demonstrates that human capital is a significant factor in economic growth. This article examines the relationship between Indonesia's natural resource abundance, human capital, and economic growth. The article examined the impact of natural resource and human capital on economic growth in Indonesian provinces using panel data from 2015 to 2019. The findings indicate that natural resources have a detrimental effect on economic growth. This indicates that Indonesia's natural resource-rich provinces are also suffering from the natural resource curse. Several of natural resource-rich provinces have low human capital and high poverty rates. Local Governments must reduce dependence on natural resources and shift the economy to a more productive and sustainable sectors.