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All Journal Signifikan : Jurnal Ilmu Ekonomi Economic Development Analysis Journal
Fajar Fadly
Sekolah Tinggi Ekonomi Islam (STEI) Iqra Annisa Pekanbaru
Economics, Econometrics & Finance

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Government Spending Effect on HDI Indragiri Hilir: An ECM Approach Fajar Fadly; Yurnal Edward
Economics Development Analysis Journal Vol 12 No 2 (2023): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v12i2.61053

Abstract

Indragiri Hilir Regency has the second lowest Human Development Index compared to the newly established regencies and cities in Riau province. However, Indragiri Hilir Regency has a relatively high allocation of development budget and per capita income compared to other regencies and cities. The objectives of the study were to determine whether the effect of the Indragiri Hilir government expenditure realization on the Human Development Index is cointegrated, to examine the long-term impact of expenditure realization on education, health, infrastructure, environmental, and social protection functions on the Human Development Index in Indragiri Hilir, and to analyze the short-term effects of environmental and social protection functions on the Human Development Index. The study employed the Error Correction Model (ECM) method, utilizing data from the period 2007 to 2021 obtained from the Directorate General of Fiscal Balance (DJPK) of the Indonesian Ministry of Finance for independent variables, while dependent variables were sourced from the Central Statistics Agency (BPS). The study findings revealed that government spending has a cointegrated influence on the Development Index. Furthermore, it was observed that the realization of government spending on education, health, and infrastructure functions did not significantly affect the Human Development Index in the Indragiri Hilir regency. In contrast, the realization of government spending on environmental functions showed a significant positive correlation. Similarly, the realization of Indragiri Hilir's government spending on social protection functions had a significant negative correlation. Therefore, the government of Indragiri Hilir Regency should assess expenditure realization on education, health, and infrastructure functions and introduce innovative programs. Increased spending on social protection led to a reduction in the Human Development Index.
Human Development To Democracy: An Impact Analysis of Poverty and Income Inequality In Indonesia Fadly, Fajar; Chandra, Ade
Signifikan: Jurnal Ilmu Ekonomi Vol. 13 No. 2 (2024)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v13i2.42378

Abstract

Research Originality: The research looks at the relationship and impact of welfare indicators on the implementation of democracy in Indonesia. Previous research concentrated on the impact of democracy implementation.Research Objectives:  This study aims to examine the role of public welfare variables in improving the implementation of democracy in Indonesia.Research Methods:  The study used panel data with a multiple regression approach from 34 provinces from 2009 to 2023 with the Fix Effect Model (FEM) category.Empirical Results: The research findings show that the public welfare variable has a significant effect on the democracy index in Indonesia both partially and simultaneously, and only the human development index and the democracy index are linearly related. It was found that the human development index variable is an intermediary variable influencing the relationship between income inequality and the democracy index.Implications:  To increase people's understanding of democracy, the government can lower the poverty depth index because there is no intermediate variable between the two variables.JEL Classification: C33, D72, Z13, Z18
Co-Authors Ade Chandra Yurnal Edward