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Vol. 23 No. 2 (2025): Jurnal Ekonomi Pembangunan
Submitted
September 10, 2025
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January 26, 2026
Published
January 30, 2026
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Abstract

Disparities in quality of life between regions and the phenomenon of economic growth that is not always linear with equitable welfare distribution are major challenges in development today. This study examines to analyze the dynamic determinants of the human development index and its implications for regional mobility within the framework of Klassen typology. The observation period spans from 2018 to 2023. Using the System Generalized Method of Moments (GMM) approach to overcome endogeneity issues, this study estimates the impact of economic growth, economic freedom, government effectiveness, and inflation on the HDI. The findings results show that economic growth has a positive and significant effect on the HDI, with the long-run impact being much greater than the short-run impact. This confirms that improvements in quality of life are cumulative and require steady growth. Conversely, economic freedom is found to have a significant negative effect indicating that market liberalization without institutional maturity actually hinders equitable development. Meanwhile, government effectiveness and inflation did not show a significant effect, implying a gap in policy implementation. This study concludes that in order to encourage regional transition towards higher levels of development, policy strategies must focus on long-run economic growth sustainability and strengthening social safety nets before pursuing aggressive market liberalization.

Keywords

Human Development Index Economic growth GMM system Economic freedom Klassen typology

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Author Biographies

Etik Umiyati, Department of Economics, Faculty of Economics and Business, Universitas Jambi, Indonesia

Associate Professor at Universitas Jambi

Faradina Zevaya, Department of Economics, Faculty of Economics and Business, Universitas Jambi, Indonesia

Lecturer at Universitas Jambi

Ph.D Student at University of Szeged, Hungary

Fadwa Rhogib Asfahani, Department of Economics, Faculty of Economics and Business, Universitas Jambi, Indonesia

Alumni

How to Cite
Umiyati, E., Zevaya, F., & Asfahani, F. R. (2026). The Dynamic Determinants of Human Development in ASEAN: Evidence from the GMM System Model. Jurnal Ekonomi Pembangunan, 23(2), 111–124. https://doi.org/10.29259/jep.v23i2.23443
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