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All Journal Al-Ijtima`i: International Journal of Government and Social Science Gender Equality: Internasional Journal of Child and Gender Studies EKONOMIS : Journal of Economics and Business Al-Muzara'ah Ekombis: Jurnal Fakultas Ekonomi Jurnal EK dan BI SELODANG MAYANG Intervensi Komunitas: Jurnal Pengabdian Masyarakat Khazanah Intelektual JIHBIZ :Global Journal of Islamic Banking and Finance. JIMEBIS Jurnal Prajaiswara Share: Jurnal Ekonomi dan Keuangan Islam Journal of Malikussaleh Public Economics Golden Ratio of Data in Summary EKOBIS SYARIAH Proceedings of Femfest International Conference on Economics, Management, and Business Jurnal Ekonomi Pembangunan ASNAF Proceedings of Femfest International Conference on Economics, Management, and Business Desultanah: Journal Education and Social Science
Cut Dian Fitri
Universitas Islam Negeri Ar-Raniry Banda Aceh
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Journal : Jurnal Ekonomi Pembangunan

 1 
Does Government Spending Reduce Poverty in Local Economies? A Dynamic GMM Analysis Fitri, Cut Dian; Amri, Khairul
Jurnal Ekonomi Pembangunan Vol. 23 No. 1 (2025): Jurnal Ekonomi Pembangunan
Publisher : Department of Development Economics, Universitas Sriwijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29259/jep.v23i1.23360

Abstract

Poverty has been a challenge for economic development in various regions in Indonesia. This study offers empirical insights into the effectiveness of fiscal policy as a strategic development instrument in reducing poverty. This study investigates the impact of local government spending on poverty alleviation in Jambi Province, addressing a critical challenge in regional economic development. We specifically examine the effects of expenditures on health, education, and economic functions on poverty levels. Utilizing panel data from 11 districts and cities in Jambi Province between 2016 and 2023, we employ a dynamic Generalized Method of Moments (GMM) model for robust analysis. Our empirical results indicate that health and economic function expenditures significantly reduce poverty levels. Conversely, while education spending exhibits a negative correlation with poverty, this effect is not statistically significant. These findings highlight the importance of optimizing regional budget allocations, particularly towards health and economic programs, as a practical implication for effective poverty reduction strategies in Jambi Province. This research contributes to understanding the nuanced role of local fiscal policy in addressing poverty in decentralized contexts.
Co-Authors A Wahid, Nazaruddin Aina Safitri Amanatillah, Dara Anna Christi Suwardi, Anna Christi Ariyati, Nadlia Azimah Dianah Azimah Dianah Bastian, Rifqya Azzahra BOBBY RAHMAN, BOBBY Chairunnas Chairunnas Dara Amanatillah Fadhlurrahman, Al Haqqi Hafidhah Hafidhah Hafiizh Maulana Hasna Lathifah Havna Havna Hawari, Zakia Ikhsan Ikhsan Ikhsan Ikhsan Inayatillah Inayatillah Israk Ahmadsyah Jariah Abu Bakar Junia Farma Khairi, Khairi Khairul Amri Khairul Amri M. Rinaldi Saputra Mardhiah, Nelli Masni, Melly Muhammad Adnan Muhammad Reza Fahlefi Muhammad Rival Hasibuan Muhammad Zulhilmi Muliadi Muliadi Musdawati, Musdawati Nailul Muna Nazaruddin Nazaruddin Ovasani Lianda Putra, Awang Darmawan Rahmah, Annisa Rina Desiana Rizkika Lhena Darwin Rouzi Amsyal Ruhamah Ruhamah Septiana, Nabila Amira Seri Murni Siti Laila Rahmatina Sri Rosmiati Sani Syahrul Fadhli Tazkiya Lubis, Indina Teuku Ghufran Wafi Vonda, Pocut Ismyati Winny Dian Safitri Zaki Fuad Zulfakar Zulfakar Zulfakar, Zulfakar