The Influence of Democracy, Technology, and Investment on the Human Development Index in Indonesia

Faradilla Amelia Putri; Wenny Restikasari

doi:10.55927/fjmr.v4i10.546

Authors

Faradilla Amelia Putri State University of Surabaya
Wenny Restikasari State University of Surabaya

DOI:

https://doi.org/10.55927/fjmr.v4i10.546

Keywords:

Human Development Index, Democracy, ICT, Domestic Investment, Foreign Investment

Abstract

Human development is an essential measure of societal quality, reflected in education, health, and economic well-being. This study investigates the influence of democracy, technology, and investment on Indonesia’s Human Development Index (HDI) during 2019–2023, using panel data regression with 38 provinces. Chow and Hausman tests indicate that the fixed effects model is most appropriate. The results reveal that information and communication technology access, information and communication technology skills, and domestic investment significantly and positively impact HDI, while democracy and foreign investment show no significant effect. These findings highlight digital transformation and domestic investment as key drivers of human development. Therefore, policies should focus on strengthening digital literacy and fostering a supportive domestic investment climate to accelerate human development progress.

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