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Journal : Economic Development Analysis Journal

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.
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.