The Impact of Government Revenue and Government Spending on Human Development Index Convergence in Indonesia

Abstract

This study examines human development index (HDI) convergence across Indonesia's 34 provinces from 2010 to 2022. Findings show both absolute and conditional HDI convergence, with degree of fiscal decentralization, degree of financial dependence, and government spending in education accelerating convergence. The convergence speed increased from 0.50% (absolute) to 1.03% (conditional).