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All Journal Jurnal Pendidikan Ekonomi, Perkantoran, dan Akuntansi
Margaretta
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Economics, Econometrics & Finance Education Social Sciences Other

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THE EFFECT OF LOCAL GOVERNMENT EXPENDITURE ON DEVELOPMENT INEQUALITY WITHIN AND OUTSIDE JAVA ISLAND Margaretta; Iranto, Dicky; Nikensari, Sri Indah
Jurnal Pendidikan Ekonomi, Perkantoran, dan Akuntansi Vol. 5 No. 1 (2024): Jurnal Pendidikan Ekonomi, Perkantoran, dan Akuntansi
Publisher : Faculty of Economics and Business, Universitas Negeri Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21009/jpepa.0501.14

Abstract

This study aims to determine the effect of local government spending on infrastructure, education and health sectors on development inequality in Java and the Eastern Region. This research uses a quantitative approach, using panel data consisting of 18 provinces over a period of five years (2017-2021). The data analysis involves three main steps: (1) testing the model using the Chow test, Hausman test, and Lagrange multiplier test; (2) conducting classical assumption tests including normality, multicollinearity, and heteroscedasticity tests; and (3) performing hypothesis testing using t-test, F-test, and determination coefficient (R²) test. Research results shows that spending in the infrastructure sector has a negative impact on development gaps. Every 1% increase in local government spending on infrastructure can reduce the development gap by 1%. On the other hand, spending in the education sector has a positive and significant impact, where a 1% increase in spending will increase the development gap by 1%. Expenditures in the health sector do not have a significant impact on the development gap between Java Island and the Eastern Region.
Co-Authors Dicky Iranto Sri Indah Nikensari