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All Journal Jurnal Ecodemica : Jurnal Ekonomi Manajemen dan Bisnis
Naimmatul Khairat
Universitas Padjadjaran
Economics, Econometrics & Finance

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The Impact of Government Spending on Economic Output Provinces In Indonesia Adhitya Wardhana; Bayu Kharisma; Naimmatul Khairat
Jurnal Ecodemica : Jurnal Ekonomi Manajemen dan Bisnis Vol 7, No 1 (2023): Ecodemica: Jurnal Ekonomi, Manajemen dan Bisnis
Publisher : LPPM Universitas BSI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31294/eco.v7i1.14612

Abstract

The purpose of this study is to analyze the impact of government spending on provincial economic output in Indonesia. GRDP is used as a proxy for economic output growth. The object research is the provinces in Indonesia (33 provinces) with the research period 2016-2021. The research method used is Generalized Least Square (GLS). The results showed that the variables of unemployment, government spending on social protection, mean of year's scholling (MYR) and labor had a significant effect on output growth (GRDP), while education spending did not significantly affect output growth. Therefore, the central and regional governments make planning plans on an annual, medium-term and long-term basis with the intention that the role of the existing budget in government can produce targeted output, especially in the education sector.Keyword: output growth; government expenditure; generalized least square; GRDP
Co-Authors Adhitya Wardhana Bayu Kharisma