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All Journal Jurnal Ekonomika INSPIRASI JSTT Panrita Abdi - Jurnal Pengabdian pada Masyarakat Jurnal Mirai Management Inovasi : Jurnal Ekonomi, Keuangan, dan Manajemen SEIKO : Journal of Management & Business JURNAL PENDIDIKAN TAMBUSAI Ecces: Economics, Social, and Development Studies Ecobisma (Jurnal Ekonomi, Bisnis dan Manajemen) Journal of Enterprise and Development (JED) G-Couns: Jurnal Bimbingan dan Konseling Abdimas Indonesian Journal Development Policy and Management Review Civil Engineering Scientific Journal JIM: Jurnal Ilmiah Mahasiswa Pendidikan Sejarah Pancasila International Journal of Applied Social Science INOVASI: Jurnal Ekonomi, Keuangan, dan Manajemen
Sabir Sabir
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Journal : Ecces: Economics, Social, and Development Studies

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Regional Disparities in Public Expenditure Effectiveness; A Comparative Analysis of Western and Eastern Indonesia Sabir, Sabir; Rahman R, Abd; Fernandes, Adji Achmad Rinaldo; Bakar, Normizan bin
EcceS: Economics, Social, and Development Studies Vol 12 No 1 (2025): June
Publisher : Economics Department, Faculty of Economic and Islamic Business, Universitas Islam Negeri Alauddin Makassar, Indonesia

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Abstract

This study investigates the impact of government expenditure on employment across Indonesia’s regional economies, incorporating private investment as a mediating variable and region as a moderating variable. Using data from 2010 to 2022, the analysis focuses on five categories of government spending: general, housing and settlement, economic, education, and health. A multigroup path analysis model is employed to examine both direct and indirect effects of these expenditures on employment. The results reveal that government spending has a stronger impact on employment in the western region compared to the eastern region. Regional differences significantly moderate the relationship between government expenditure and private investment, particularly in general, economic, education, and health spending. In contrast, housing and settlement expenditure consistently affect both regions. Furthermore, private investment significantly enhances employment, especially in the western provinces. These findings underscore the importance of accounting for regional disparities in fiscal policy design and provide valuable insights for developing more effective and equitable regional economic strategies in Indonesia.
Co-Authors Abdullah, Serlih Agussalim, Agussalim Ahmad Fadly Rusdin Ambosakka, Dhemanda H. Andi Aswan, Andi Aprilianti, Ni Luh Putri Arniawan, Arniawan Bakar, Normizan bin Elfiyunai, Ni Nyoman Faathir, A. Fathyan Al Fatmawati Fatmawati Fattah, Sanusi Fernandes, Adji Achmad Rinaldo Fitrah Fitrah, Fitrah Hamrullah Hamrullah Hamrullah, Hamrullah Hamza, La Ode Firman Hasbullah Hasbullah* Hasbullah*, Hasbullah Indriyani Indriyani Juliansyah Roy Kadir, Abd. Rahman Katrina Feby Lestari, Katrina Feby Kawiri, Hendrik Madris Madris Madris Madris, Madris Magfira, Magfira Masahengke, Romildah Oktovin Muhammad Munif Musran Munizu Nurdin Brasit Nurhasana, Dwi Nursinah Amrullah Nursini Nursini, Nursini Nurwahida Alimuddin Pramesti Heriyanto, Diajeng Dita Nur Rahman R, Abd Ramadana, Tariza Razak, Abd Rahman Rosa Dwi Wahyuni Ruauw, Andreas Saleh, Afni Safitri Sam, Jein Sari Jasi, Alyu Indah Sari, Waode Fitrah Sihombing, Jovanca Estevania Lynch Siti Rahmi Suaib, Suaib Sukarno, Zulfikry Syarif, Iif Ahmad Tarfin, Ruslan Topea, Monalisa Wahyudi Wahyudi Wahyuni, Eka Sri Wardana, Helmalia Putri Wiwin Wiwin, Wiwin Wundu, Lovi Delordy