The Effect of Government Spending on the Education and Health Sectors on the Human Development Index of Central Sulawesi Province from 2020 to 2024
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Rinaldi Rinaldi*
Kalvin A. Parinding
Sitti Rahmawati
Rita Yunus
Armin Armin
Human development remains a central objective of regional development policies, as improvements in education and health are widely recognized as key determinants of societal welfare and economic progress. This research seeks to investigate the influence of public fiscal allocations to the education and health sectors on the Human Development Index (HDI) in Central Sulawesi Province over the 2020–2024 period. Utilizing panel data drawn from 13 districts and municipalities, the study applies panel regression techniques to capture both cross-sectional and temporal dynamics. Model specification tests, namely the Chow and Hausman tests, confirm the Fixed Effect Model (FEM) as the most suitable analytical framework. The empirical findings demonstrate that government outlays in the education and health sectors exert a statistically significant and positive joint effect on HDI. When examined individually, educational expenditure exhibits a positive and significant contribution to human development outcomes, while health-sector spending likewise shows a significant effect, characterized by a comparatively larger coefficient magnitude. Furthermore, the coefficient of determination suggests that variations in HDI across districts and cities in Central Sulawesi are largely accounted for by differences in education and health expenditures. Overall, the results underscore the critical role of sustained and equitably distributed investment in education and health as fundamental levers for fostering inclusive and balanced human development at the regional level.
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