Main Article Content
Abstract
Education is often associated with the main key driver of a country's economic growth. However, disparities in access of education between regions remain an obstacle to economic growth in Indonesia. This study examines the relationship between education and economic growth by incorporating spatial interdependencies across 34 provinces from 2013 to 2023. Using the General Nesting Spatial (GNS) model, the research analyzes the effects of capital, labor, and average years of schooling as key production factors. The findings reveal that while the average years of education have a negative direct impact on provincial economic growth, however exert a positive indirect (spillover) effect through neighboring regions. These results indicate that education quantity alone is insufficient to drive productivity without complementary improvements in quality and regional coordination. The study highlights the importance of regionally integrated and evidence-based education policies to enhance human capital formation and promote balanced, sustainable growth across Indonesia.
