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All Journal Implementasi Manajemen & Kewirausahaan
Ambar Sukma Widhiana
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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Public spending on basic services and poverty alleviation: Empirical evidence from Eastern Indonesia Suryani Yuli Astuti; Tri Haryanto; Deni Kusumawardani; Ambar Sukma Widhiana
Implementasi Manajemen & Kewirausahaan Vol 5 No 2 (2025): IMKA JOURNAL (OCTOBER)
Publisher : Prodi Manajemen Fakultas Ekonomi dan Bisnis Universitas Wijaya Putra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38156/imka.v5i2.784

Abstract

This study examines the impact of government spending on basic services—education, health, and social protection—along with infrastructure and economic growth on poverty levels in Nusa Tenggara Timur (NTT), Maluku, and Papua. Utilizing panel data from 2008 to 2023, the research initially identifies the Fixed Effect Model (FEM) as the best fit. However, diagnostic tests revealed issues of heteroskedasticity and autocorrelation. To ensure valid and unbiased estimates, the Feasible Generalized Least Square (FGLS) method was employed. The results indicate that government spending on education, economic growth, and access to basic infrastructure (electricity and clean water) significantly reduce poverty. Conversely, spending on health and social protection does not show a significant impact, likely due to geographical barriers and distribution challenges. The findings suggest that territory-based policies focusing on education and infrastructure expansion are crucial for poverty eradication in Eastern Indonesia.
Co-Authors Deni Kusumawardani Suryani Yuli Astuti Tri Haryanto