What's the Difference and Similarities between the Investment Education Investment Health When Associated with Economic Growth?

Posted by The New Economics Education

Equation
Niken Sulistyowati, et al (2010) says in his study "The improvement of education, leading to increased labor productivity. Increased productivity of labor and other production inputs lead to output increases. Increase in output leads to an increase government revenue. Effects could further encourage increased investment and infrastructure spending. "This suggests that investments in education have a positive impact on economic growth, the higher one's education investment will enhance economic growth.

While Arum Atmawikarta (2002) states "At the micro level, namely at the level of individual and family health is the basis for labor productivity and capacity to learn at school. A healthy workforce is physically and mentally more energetic and stronger, more productive, and earn a high income. At the macro level, residents with a level of good health is an input (input) is important for poverty reduction, economic growth, and long-term economic development. Some of the historical experience proves the success of economic takeoff, rapid economic growth is supported by a significant breakthrough in the field of public health, combating disease and improving nutrition. "So it can bdisimpulkan that health investment is also bringing a positive impact on a country's economic growth.

Based on the description it can be concluded that investments in education and health investment are equally positive effect on a country's economic growth rate. Both (between investments in education and health) are equally have an impact on the productivity of one's work, and which will have an impact on economic growth.

Difference
Good health investment with investment in education is to result in increased economic growth, but after research conducted by Rasidin K. Sitepu and M. Bonar Sinaga (2007) was the effect of health investment on economic growth in Indonesia is greater when compared to investments in education. One result of these studies is that in the event of an increase in government spending on education by 20%, increase real GDP by 2.19% nationally. While at the time there was an increase in government spending on health by 20%, increase real GDP by 3.68% nationally. In addition, at the end of his research conclusions Rasidin K. Sitepu and M. Bonar Sinaga (2007) says that "health investment can reduce poverty by a greater percentage when compared to investments in education."

Based on the description it can be concluded that the health investment over a big impact on economic growth when compared to health investment. In this health investment over a major effect on the national increase in real GDP and reduce poverty.

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