DYNAMIC PANEL DATA ANALYSIS OF THE HUMAN DEVELOPMENT INDEX IN INDONESIA 2014-2023

The Human Development Index is an important indicator for measuring people's welfare. This study aims to determine the influence of household consumption, Gross Regional Domestic Product, investment, and government expenditure on the Human Development Index in 35 provinces in Indonesia. The data used is secondary data from 2014 to 2023. The data source used is the Central Statistics Agency, using dynamic panel data with the Generalized Method of Moment method. The researcher found that the influence of Gross Regional Domestic Product has an important role in influencing the human development index. The increase in population expenditure increased the level of satisfaction with the basic needs of the population. This has led to an increase in education and health consumption, which increases Indonesia's human development index. Researchers also found that the achievement of economic development in a country requires individual human efforts to improve the quality of life. An important factor that must be built is the quality of human resources, facilities, infrastructure, and modern economic institutions. The creation of economic development is highly dependent on the role of the government, among others, manifested through government spending. Focusing on expenditures that directly affect people's welfare can accelerate the improvement of the quality of Human Resources. The purpose of this study is to analyze the short-term and long-term relationship between these variables and the human development index in Indonesia.