Factors Affecting the Relationship between Education Budget and Human Capital that affects Gross Domestic Product (GDP)

Abstract

The purpose of this research is to study the influence of education budget and human capital that affect national income. And to create equations for forecasting, education budgets, and human capital that affect national income It is a descriptive research from secondary data, which uses tools such as data record forms to collect data such as Education budget, labor force, capacity development of labor and national income during the year 2006-2018 for quantitative analysis to find the relationship based on the hypothesis and to determine the complex regression equation using the least squares method according to the Cobb-Douglas production function concept. And create an equation model for forecasting, the results show that changes in education budgets (EB), labor force (LF), and capacity development (CDL) have a significant effect on 0.01 national income, which is based on research assumptions. For complex regression equations, it was found that the factors of education budget and human capital had significant effect on national income at the level of 0.01 together with the model obtained from the research as follows: These have the power to explain 96.20 percent, with a standard deviation of ± .178 in forecasting equation regression complexes. For the forecast as follows: Y = -74083656.4 + 1.597 CDL + .043 EB + .264 LF