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All Journal Jurnal Ekonomi Pembangunan Journal of Development Economic and Social Studies (JDESS)
Hans, Michael
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Economics, Econometrics & Finance

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Efficiency of Government Expednitures and Their Effects on Inter-regional Convergence: A Case Study of Indonesia Hans, Michael; Prasetyia, Ferry
Journal of Development Economic and Social Studies Vol. 4 No. 1 (2025)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/jdess.2025.04.1.25

Abstract

The implementation of national development cannot be separated from the role of the government through the programs it funds. Government spending is generally allocated to productive activities that can basically contribute to reducing disparities between provinces in Indonesia. However, not all of this government spending ends in waste alone. Based on this, this study aims to measure the extent to which publik spending efficiency can contribute to the convergence of economic growth in Indonesia by using government function spending data from 34 provinces for the period 2017 to 2022 taken from the Ministry of Finance of the Republic of Indonesia. Furthermore, dynamic panel data estimation uses the Generalized Method of Moment (GMM) method to obtain the economic growth convergence coefficient.
Measuring The Efficiency of Public Spending In Combating Poverty in Indonesia Prakoso, Muhammad Fajar Dito; Hans, Michael; Wicesa, Nayaka Artha
Jurnal Ekonomi Pembangunan Vol 13 No 2 (2024): Volume 13 Nomor 2 Tahun 2024
Publisher : Fakultas Ekonomi dan Bisnis Universitas Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23960/jep.v13i2.3520

Abstract

Poverty is a complex issue faced by various countries, including Indonesia. One fiscal instrument in poverty alleviation efforts is the allocation of government public spending. Based on this policy, this research aims to analyze the efficiency of government expenditure in alleviating poverty. This study employs two methods: data envelopment analysis and panel data regression analysis. Government expenditure is proxied by education and health expenditure relative to total government spending. The estimation results of this research indicate that education expenditure has a significant negative effect. Meanwhile, health expenditure has a positive, albeit insignificant, effect on poverty. The contributions of this research include policy recommendations that the government should undertake within its fiscal capacity to address social issues such as poverty.
Co-Authors Ferry Prasetyia Prakoso, Muhammad Fajar Dito Wicesa, Nayaka Artha