Received:
2019-07-16 | Accepted:
2020-02-15 | Published:
2020-06-30
Title
Human capital, institutional economics and entrepreneurship as a driver for quality & sustainable economic growth
Abstract
The Indonesian government policy in encouraging sustainable economic growth to reduce unemployment, poverty and inequality is threatened to fail, because economic growth does not reach targets and is not of quality. The purpose of this research is to explain the four pillars of growth and development namely; human capital, social capital, institutional economics and entrepreneurship as the main drivers of quality and sustainable economic growth. This research method used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta. The correlational form of recursive model path analysis was used as analytical method. The research results show the very strong role of human capital as the main key in driving economic growth both directly and indirectly. The existence of human capital and social capital will further encourage new economic institutions, furthermore new economic institutions will encourage the competitiveness of productive entrepreneurship and high, quality, and sustainable regional economic growth. The policy implication is that high, quality, and fundamentally sustainable economic growth must be built on the four main pillars basis namely; human capital, social capital, institutional and entrepreneurship in order to be more successful in reducing development problems; unemployment, poverty and income inequality.
Keywords
human capital, social capital, institutional, entrepreneurship, economic growth
JEL classifications
J24
, L31
, O47
URI
http://jssidoi.org/jesi/article/540
DOI
Pages
2575-2589
Funding
This research was supported and funded by the Decentralization PDUPT scheme research program from the Directorate General of Higher Education, the Ministry of Research and Higher Education, Republic of Indonesia with Contract Letter: 192 / SP2h / LT / DRPM / 2019
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
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