Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

<Previous Article In Volume
Next Article In Volume>

Human Capital and FDI Effects on Regional Economic Growth: An ECM Approach

Authors
Caesar Muslim1, *, Anas Iswanto1, F. Y. Amanus Khalifah1
1Hasanuddin University, Makassar, Indonesia
*Corresponding author. Email: muslimc24a@student.unhas.ac.id
Corresponding Author
Caesar Muslim
Available Online 20 June 2026.
DOI
10.2991/978-94-6239-709-5_40How to use a DOI?
Keywords
Human Capital; FDI; Economic Growth; ECM; Economics
Abstract

The present research aims to examine the effect of human resource quality, as demonstrated by the average years of schooling (RLS), and the influence of foreign capital, quantified by Foreign Direct Investment (FDI), on economic growth in South Sulawesi Province in Indonesia. The analysis utilizes the Error Correction Model (ECM) methodology to elucidate both short-term and long-term correlations among variables. The estimation results demonstrate that RLS exerts a positive and statistically significant influence on economic growth in both the short and long term, underlining the essential role of education in increasing productivity and fostering sustainable development. In contrast, FDI shows a positive but statistically insignificant correlation in both the short and long terms, indicating that foreign capital inflows have not yet effectively contributed to regional economic expansion. These findings emphasize the necessity for development plans that focus on developing human capital and optimizing foreign direct investment through improved infrastructure, regulatory frameworks, and closer connections with productive sectors.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
20 June 2026
ISBN
978-94-6239-709-5
ISSN
2352-5428
DOI
10.2991/978-94-6239-709-5_40How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Caesar Muslim
AU  - Anas Iswanto
AU  - F. Y. Amanus Khalifah
PY  - 2026
DA  - 2026/06/20
TI  - Human Capital and FDI Effects on Regional Economic Growth: An ECM Approach
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 581
EP  - 593
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_40
DO  - 10.2991/978-94-6239-709-5_40
ID  - Muslim2026
ER  -