DETERMINANT ANALYSIS OF HUMAN DEVELOPMENT INDEX IN WEST NUSA TENGGARA

Abstract

This study analyzes the determinants of the Human Development Index (HDI) in West Nusa Tenggara (NTB) during the period 2010-2024 using the Vector AutoRegression (VAR) model. The results of the variance decomposition of HDI and its components, namely Healthy Life Expectancy (UHH), Average Years of Schooling (RLS), and Real Expenditure per CapitaL , indicate short-term stability characterized by the dominance of own-shocks in the initial variability of each indicator. However, in the long run, the interactions between development dimensions become more complex, with the contribution of UHH and RLS to the variance of HDI increasing significantly, highlighting the crucial role of health (SDG 3) and quality human capital (SDG 4) in development. Although the contribution of GRDP per capita is relatively moderate, its positive trend still underscores the importance of a decent standard of living (SDGs 1 and 8). Overall, this study concludes that human development in NTB is a multidimensional process that requires a holistic approach through policy integration in the health, education, and economic sectors, with the main focus on increasing UHH and RLS as well as efforts to create inclusive economic growth and reduce inequality to achieve sustainable and inclusive human development.