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Determinants of Poverty in Indonesia: Does Per Capita Income Matter? Imantria, Benny
Efficient: Indonesian Journal of Development Economics Vol. 7 No. 3 (2024)
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/xp97vg80

Abstract

Poverty in Indonesia has decreased significantly over the past 50 years, but per capita income does not yet indicate deprivation of basic needs. This study aims to identify the determinants of poverty in Indonesia through an economic and social aspect. Data sample used includes poverty rates and socio-economic aspects from 34 provinces in Indonesia for the period 2015-2022, which were analyzed using panel data regression with random effect model. The novelty of this study lies in the socio-economic variables representing financial capability and basic needs. This study found that per capita income, average years of schooling, life expectancy, access to clean water, and access to electricity have negative and significant effects, while unemployment, Gini coefficient, and poverty line have positive and significant effects on poverty in Indonesia. Poverty alleviation can be accelerated not only by increasing per capita income, but also by government policies that equalize income distribution and reduce deprivation of basic needs. Policymakers are expected to improve economic growth, education, healthcare, access to clean water and electricity, reduce income inequality and unemployment, and maintain purchasing power to alleviate poverty in Indonesia.
Does Local Government Expenditure Lead to Human Development in Indonesia? Imantria, Benny; Kurnia, Akhmad Syakir
Economics Development Analysis Journal Vol 13 No 2 (2024): 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.v13i2.78979

Abstract

Human development has become a national development priority in the vision of Indonesia Emas 2045, but the HDI score shows district-level inequality in increasing local government expenditure. This study aims to identify the effect of local government expenditure realization on HDI. The data used is 508 districts of Indonesia in 2017-2022, and it was analyzed using a panel data regression fixed-effect model. The novelty of this study lies in the local government at the district level and local government expenditure according to function and type classification. The study shows that education expenditure, health expenditure, economic expenditure, employee expenditure, and goods and services expenditure have a significant positive effect on HDI, but capital expenditure has a significant negative effect on HDI. Local governments are expected to understand the dominant role of health expenditure in increasing HDI, increase the budget allocation for economic and capital expenditure, reduce the budget allocation for employee and goods and services, and measure the performance of local government expenditure.
Determinants of Premature Deindustrialization and Uneven Manufacturing Industry in Indonesia Imantria, Benny
Jurnal Penelitian Ekonomi dan Bisnis Vol. 10 No. 1 (2025): March 2025
Publisher : Universitas Dian Nuswantoro Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33633/jpeb.v10i1.11581

Abstract

Indonesia is currently undergoing an economic transformation to become a developed country, but premature deindustrialization and uneven manufacturing industry between western and eastern Indonesia may hinder economic development. This study aims to identify determinants of Indonesia's declining manufacturing industry output, which has led to premature deindustrialization and uneven manufacturing industry. Data sample used is a panel dataset of 34 provinces during the period 2015-2023 which was analyzed using panel data regression and spatial autoregressive combined (SAC). The novelty of this study lies in production function perspective and spatial regression. This study finds that foreign direct investment, domestic investment, labor, and trade openness have a significant positive effect on manufacturing industry output, while average years of schooling and minimum wage have no significant effect on manufacturing industry output in Indonesia. In addition, there is no significant spillover effect from neighboring provinces that determines manufacturing industry output in Indonesia during the observation period. Policymakers are expected to increase value and investment projects, employment opportunities, formal education quality, capital goods imports, and final goods exports. In addition, minimum wage needs to be adjusted according to regional conditions and provide employment affirmation to local labor.
Does Economic Growth Lead to Government Expenditure in Indonesia? Imantria, Benny
Terbuka Journal of Economics and Business Vol. 6 No. 1 (2025)
Publisher : Lembaga Penelitian dan Pengabdian kepada Masyarkat-Universitas Terbuka

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Economic growth effect on government expenditure has been debated theoretically and empirically. This study aims to identify the unidirectional relationship from GDP and government revenue to government expenditure in the short and long-run in Indonesia. Data sample used is a time series from 1976 to 2023, analyzed using ARDL model. The novelties lie in the time period, data variables, and analytical methods. This study found that GDP has no effect in the short-run, but GDP has a significant positive effect on government expenditure in the long-run, indicating that wagner's law has occurred in Indonesia during the observation period. Government revenue has a significant effect on government expenditure in the short and long-run, although the magnitude effect is lower in the long-run. Therefore, government expenditure is mainly determined by government revenue in the short-run and GDP in the long-run. Policymakers are expected to increase economic growth and government revenue, as well as allocate and realize government expenditure effectively
Does Corruption Hinder Economic Growth? A Simultaneous Analysis Susilowati, Indah; Wicaksana, Tania; Imantria, Benny; Febi, Annisa; Anjarsari, Lia
Economics Development Analysis Journal Vol 13 No 2 (2024): 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.v13i2.78973

Abstract

Corruption has a causal relationship with economic growth that economists have long studied. This study aims to determine the causal relationship between corruption and economic growth, the effects of human development and good governance on corruption, and the effect of investment, labor force, and the use of technology on economic growth. The data used is panel data consisting of 43 Asian countries in 2012-2022, which were analyzed using Two-Stage Least Squares (2SLS). This study found that corruption and economic growth have a positive causal relationship, thus supporting the theory of Sand the Wheel that corruption hinders economic growth in Asian countries except Central Asia, and the determinants of corruption and economic growth have varying effects in the Asian region. This study provides information for stakeholders to develop policies that encourage economic growth by prioritizing human development, creating good governance, and increasing physical capital, human capital, and technology adoption.