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Rosalina Tineke Kusumawardhani
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Economics, Econometrics & Finance Social Sciences

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Impact Of Income Inequality, Economic Growth, and Government Health Expenditure on The Health Sector in Indonesia Rosalina Tineke Kusumawardhani; Damia Liana
Jurnal Budget : Isu dan Masalah Keuangan Negara Vol 10 No 1 (2025): Jurnal Budget: Isu dan Masalah Keuangan Negara
Publisher : Pusat Analisis Anggaran dan Akuntabilitas Keuangan Negara

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Abstract

This study investigates the impact of income inequality, regional economic growth, and government health expenditure on the health across 34 provinces in Indonesia from 2018 to 2022. Using a panel data regression with a fixed effects model, the results show that income inequality has a negative and statistically significant effect on the health sector, while economic growth and government spending have positive and significant effects. Provinces with higher income inequality tend to have lower health sector performance, particularly in terms of health budget allocation and public access to health services. In contrast, regions with sustained economic growth and increased government health expenditure experience improvements in health infrastructure and service delivery. These findings suggest that narrowing income disparities and maintaining consistent economic and fiscal support are essential to improving health sector outcomes at the provincial level in Indonesia. Policy interventions focusing on inclusive economic development and equitable budget distribution can help reduce regional disparities in health services.
The Role of Human Capital and Urbanization in Driving Economic Growth in Indonesia Damia Liana; Rosalina Tineke Kusumawardhani
Jurnal Budget : Isu dan Masalah Keuangan Negara Vol 10 No 2 (2025): Jurnal Budget: Isu dan Masalah Keuangan Negara
Publisher : Pusat Analisis Anggaran dan Akuntabilitas Keuangan Negara

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Abstract

This study examines the impact of urbanization, education, interaction between urbanization and education, government expenditure, labor, and trade on Indonesia’s economic growth. Using the Autoregressive Distributed Lag (ARDL) approach, the analysis distinguishes the short-run and long-run effects of each variable on GDP. The results show that urbanization positively affects long-run growth through agglomeration economies, while education significantly enhances productivity in line with endogenous growth theory. However, urbanization without adequate skill improvement reduces productivity due to labor skill mismatches in urban areas. Government expenditure has a negative short-run effect but a positive long-run impact, indicating fiscal adjustment lags before investment spending stimulates growth. Meanwhile, trade shows a negative long-run relationship, reflecting dependence on imported consumer goods and low-value commodity exports. The findings highlight the importance of strengthening human capital, improving fiscal efficiency, and promoting trade policies that enhance domestic value-added to achieve inclusive and sustainable economic growth.
Co-Authors Damia Liana