Show simple item record

Beyond Physical Capital Accumulation: Does Human Capital Reduce the Reliance on Infrastructure in ASEAN-5?

dc.contributor.authorSistriatmaja, Muhammad Bagus
dc.contributor.authorPratama, Yogi Pasca
dc.contributor.authorPrasetyo, Andri
dc.date.accessioned2026-09-28T14:21:43Z
dc.date.available2026-09-28T14:21:43Z
dc.date.issued2026-09-25
dc.identifier.issn1508-2008
dc.identifier.urihttp://hdl.handle.net/11089/59438
dc.description.abstractThis study investigates the nonlinear interaction between physical and human capital on economic growth across ASEAN-5 economies (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam). Challenging the conventional capital-skill complementarity hypothesis, this research utilizes a macro-panel dataset (2000–2019) and employs the Fixed Effects estimator with Driscoll–Kraay standard errors to address cross-sectional dependence. The empirical results reveal a statistically significant negative interaction between mean-centered physical and human capital (β₄ = −1.152, p < 0.001). This indicates that as human capital levels rise above their sample mean, the marginal impact of physical capital accumulation diminishes – from 0.536 at the 10th percentile of HCI to 0.250 at the 90th percentile – providing evidence of structural transformation from investment-driven to efficiency-driven growth. The marginal effect remains positive throughout the observed range but declines monotonically. These findings imply that avoiding the Middle-Income Trap requires policymakers to pivot from “hard” infrastructure accumulation to “soft” infrastructure investments and synchronize industrial upgrading with workforce education.en
dc.language.isoen
dc.publisherWydawnictwo Uniwersytetu Łódzkiegopl
dc.relation.ispartofseriesComparative Economic Research. Central and Eastern Europe;3en
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0
dc.subjecteconomic growthen
dc.subjecthuman capitalen
dc.subjectphysical infrastructureen
dc.subjectstructural transformationen
dc.subjectMiddle-Income Trapen
dc.subjectASEAN-5en
dc.titleBeyond Physical Capital Accumulation: Does Human Capital Reduce the Reliance on Infrastructure in ASEAN-5?en
dc.typeArticle
dc.page.number155-169
dc.contributor.authorAffiliationSistriatmaja, Muhammad Bagus - Universitas Sebelas Maret, Surakarta, Indonesiaen
dc.contributor.authorAffiliationPratama, Yogi Pasca - Universitas Sebelas Maret, Surakarta, Indonesiaen
dc.contributor.authorAffiliationPrasetyo, Andri - Universitas Sebelas Maret, Surakarta, Indonesiaen
dc.identifier.eissn2082-6737
dc.referencesAbdul Bahri, E.N., Wye, C.-K. (2024), Nonlinearity in energy–employment nexus: the role of FDI, trade and growth in ASEAN-5, “Journal of Social and Economic Development”, 26 (3), pp. 963–991, https://doi.org/10.1007/s40847-023-00288-3en
dc.referencesAffandi, Y., Anugrah, D.F., Bary, P. (2019), Human capital and economic growth across regions: a case study in Indonesia, “Eurasian Economic Review”, 9 (3), pp. 331–347, https://doi.org/10.1007/s40822-018-0114-4en
dc.referencesAiken, L.S., West, S.G. (1991), Multiple Regression: Testing and Interpreting Interactions, Sage, Newbury Park.en
dc.referencesAmar, S., Ariusnu, Satrianto, A. (2025), Determinants of Economic Development in ASEAN: The Role of Institutions and Human Capital, “International Journal of Sustainable Development and Planning”, 20 (8), pp. 3405–3420, https://doi.org/10.18280/ijsdp.200822en
dc.referencesArellano, M., Bond, S. (1991), Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations, “The Review of Economic Studies”, 58 (2), pp. 277–297, https://doi.org/10.2307/2297968en
dc.referencesBarro, R.J. (1991), Economic Growth in a Cross Section of Countries, “The Quarterly Journal of Economics”, 106 (2), pp. 407–443, https://doi.org/10.2307/2937943en
dc.referencesBarro, R.J. (1996), Inflation and Growth, “Federal Reserve Bank of St. Louis Review”, 78 (3), pp. 153–169, https://doi.org/10.20955/r.78.153-169en
dc.referencesBeck, N., Katz, J.N. (1995), What To Do (and Not To Do) with Time-Series Cross-Section Data, “American Political Science Review”, 89 (3), pp. 634–647, https://doi.org/10.2307/2082979en
dc.referencesBlundell, R., Bond, S. (1998), Initial conditions and moment restrictions in dynamic panel data models, “Journal of Econometrics”, 87 (1), pp. 115–143, https://doi.org/10.1016/S0304-4076(98)00009-8en
dc.referencesBrambor, T., Clark, W.R., Golder, M. (2006), Understanding Interaction Models: Improving Empirical Analyses, “Political Analysis”, 14 (1), pp. 63–82, https://doi.org/10.1093/pan/mpi014en
dc.referencesBudsayaplakorn, S., Sompornserm, T. (2021), Human capital development via education and economic growth in ASEAN economic community, “Kasetsart Journal of Social Sciences”, 42 (3), pp. 473–481, https://doi.org/10.34044/j.kjss.2021.42.3.04en
dc.referencesChaiboonsri, C., Saosaovaphak, A., Eakkapun, P., Chatter, S. (2024), The impact of infrastructure sustainable development efficiency on economies: the case of selected ASEAN countries, “Environment, Development and Sustainability”, 28, pp. 5273–5291, https://doi.org/10.1007/s10668-024-05192-2en
dc.referencesChang, Y., Fang, Z., Hamori, S. (2020), Human capital and energy: a driver or drag for economic growth, “Singapore Economic Review”, 65 (3), pp. 683–714, https://doi.org/10.1142/S0217590817500163en
dc.referencesDriscoll, J.C., Kraay, A.C. (1998), Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data, “Review of Economics and Statistics”, 80 (4), pp. 549–560, https://doi.org/10.1162/003465398557825en
dc.referencesGhosh, P.K., Paul, B. (2025), The Contribution of Physical Infrastructure to Sustainable Development in Asian Developing Economies, [in:] S. Poddar, B. Paul, A. Bhaumik (eds.), Sustainable Business Strategies for Startups and SMEs, Nova Science Publishers, Hauppauge, pp. 269–284, https://doi.org/10.52305/PEZW4637en
dc.referencesGoh, L.T. (2025), Assessing the impact of human capital development on income inequality in the ASEAN region, “Eurasian Economic Review”, 15 (3), pp. 813–844, https://doi.org/10.1007/s40822-024-00309-4en
dc.referencesGriliches, Z. (1969), Capital-skill complementarity, “The Review of Economics and Statistics”, 51 (4), pp. 465–468.en
dc.referencesHoechle, D. (2007), Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence, “The Stata Journal”, 7 (3), pp. 281–312, https://doi.org/10.1177/1536867X0700700301en
dc.referencesJama, A.B., Mohd Daud, S.N., Nayan, S. (2024), The relationship between government expenditure and economic growth in ASEAN-5 countries, “Journal of Infrastructure, Policy and Development”, 8 (7), 4329.en
dc.referencesKongsamut, P., Rebelo, S., Xie, D. (2001), Beyond Balanced Growth, “The Review of Economic Studies”, 68 (4), pp. 869–882, https://doi.org/10.1111/1467-937X.00193en
dc.referencesKrugman, P. (1994), The Myth of Asia’s Miracle, “Foreign Affairs”, 73 (6), pp. 62–78, https://www.foreignaffairs.com/articles/asia/1994-11-01/myth-asias-miracleen
dc.referencesLewis, W.A. (1954), Economic Development with Unlimited Supplies of Labour, “The Manchester School”, 22 (2), pp. 139–191, https://doi.org/10.1111/j.1467-9957.1954.tb00021.xen
dc.referencesLucas, R.E. (1988), On the mechanics of economic development, “Journal of Monetary Economics”, 22 (1), pp. 3–42, https://doi.org/10.1016/0304-3932(88)90168-7en
dc.referencesMalarvizhi, C.A.N., Zeynali, Y., Mamun, A.A., Ahmad, G.B. (2019), Financial Development and Economic Growth in ASEAN-5 Countries, “Global Business Review”, 20 (1), pp. 57–71, https://doi.org/10.1177/0972150918802684en
dc.referencesManeejuk, P., Yamaka, W. (2021), The Impact of Higher Education on Economic Growth in ASEAN-5 Countries, “Sustainability”, 13 (2), 520, https://doi.org/10.3390/su13020520en
dc.referencesMankiw, N.G., Romer, D., Weil, D.N. (1992), A Contribution to the Empirics of Economic Growth, “The Quarterly Journal of Economics”, 107 (2), pp. 407–437, https://doi.org/10.2307/2118477en
dc.referencesNgai, L.R., Pissarides, C.A. (2007), Structural Change in a Multisector Model of Growth, “American Economic Review”, 97 (1), pp. 429–443, https://doi.org/10.1257/aer.97.1.429en
dc.referencesPatiu, L.S., Nayve, R.M. (2025), Nexus between foreign direct investment inflows, institutions, and economic factors: evidence from ASEAN countries, “Review of Integrative Business and Economics Research”, 14 (4), pp. 656–672.en
dc.referencesPesaran, M.H. (2004), General diagnostic tests for cross section dependence in panels, “Cambridge Working Papers in Economics”, 0435.en
dc.referencesPesaran, M.H. (2006), Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure, “Econometrica”, 74 (4), pp. 967–1012, https://doi.org/10.1111/j.1468-0262.2006.00692.xen
dc.referencesRamlan, J., Ahmed, E.M. (2009), Information and communication technology (ICT) and human capital management trend in Malaysia’s economic development, “Applied Economics Letters”, 16 (18), pp. 1881–1886, https://doi.org/10.1080/13504850701719637en
dc.referencesRoodman, D. (2009), How to do Xtabond2: An Introduction to Difference and System GMM in Stata, “The Stata Journal”, 9 (1), pp. 86–136, https://doi.org/10.1177/1536867X0900900106en
dc.referencesSachs, J.D., Warner, A.M. (1995), Economic Reform and the Process of Global Integration, “Brookings Papers on Economic Activity”, 1, pp. 1–118, https://doi.org/10.2307/2534573en
dc.referencesSaida, Z.Z., Siti, A., Darma, D.C., Musdalifah, A. (2021), Spurring Economic Growth in Terms of Happiness, Human Development, Competitiveness, and Global Innovation: the ASEAN Case, “ASEAN Journal on Science and Technology for Development”, 38 (1), pp. 1–6, https://doi.org/10.29037/ajstd.653en
dc.referencesSirisunhirun, S., Vajrapatkul, A. (2023), An Application of Data Envelopment Analysis and Malmquist Productivity Index in the Development of Human Capital of ASEAN-5 Countries, “Thailand and the World Economy”, 41 (3), pp. 88–101, https://so05.tci-thaijo.org/index.php/TER/article/view/267629en
dc.referencesSuwanhirunkul, S., Suwanhirunkul, P., (2025), Trade openness and economic growth: the role of financial development in ASEAN countries, “South Asian Journal of Macroeconomics and Public Finance”, 14 (2), pp. 260–280.en
dc.referencesTasane, H., Srun, S. (2023), The Institutional Environment, Human Capital Development, and Productivity-Enhancing Factors: Evidence from ASEAN Countries, “TRaNS: Trans-Regional and -National Studies of Southeast Asia”, 11 (2), pp. 159–174, https://doi.org/10.1017/trn.2022.13en
dc.referencesThach, N.N. (2025), Human capital’s dual impact: advancing innovation and technology diffusion in ASEAN-5 through the Nelson-Phelps-Romer lens, “PLOS ONE”, 20 (11), e0333784, https://doi.org/10.1371/journal.pone.0333784en
dc.referencesTsaurai, K., Ndou, A. (2019), Infrastructure, Human Capital Development and Economic Growth in Transitional Countries, “Comparative Economic Research”, 22 (1), pp. 33–52, https://doi.org/10.2478/cer-2019-0003en
dc.referencesWahyudi, H., Mulyya, A.P., Husain, F.R., Palupi, W.A. (2023), Basic Infrastructure and Economic Growth in Sumatra Province, Indonesia, “WSEAS Transactions on Systems”, 22, pp. 73–86, https://doi.org/10.37394/23202.2023.22.9en
dc.referencesWang, Y., Lee, H.W., Tang, W., Whittington, J., Qiang, M. (2021), Structural Equation Modeling for the Determinants of International Infrastructure Investment, “Journal of Management in Engineering”, 37 (4), 04021033, https://doi.org/10.1061/(ASCE)ME.1943-5479.0000933en
dc.referencesZergawu, Y.Z., Walle, Y.M., Giménez-Gómez, J.-M. (2020), The joint impact of infrastructure and institutions on economic growth, “Journal of Institutional Economics”, 16 (4), pp. 481–502, https://doi.org/10.1017/S1744137420000016en
dc.contributor.authorEmailSistriatmaja, Muhammad Bagus - bagussistriatmaja@staff.uns.ac.id
dc.contributor.authorEmailPratama, Yogi Pasca - yogipasca@staff.uns.ac.id
dc.contributor.authorEmailPrasetyo, Andri - prasandri@staff.uns.ac.id
dc.identifier.doi10.18778/1508-2008.29.23
dc.relation.volume29


Files in this item

Thumbnail
Name:
155-169_Sistriatmaja_Pratama_P ...
Size:
1.026Mb
Format:
PDF
View/Open

This item appears in the following Collection(s)

Show simple item record

https://creativecommons.org/licenses/by-nc-nd/4.0
Except where otherwise noted, this item's license is described as https://creativecommons.org/licenses/by-nc-nd/4.0