Journal of Indonesian Applied Economics
Vol. 14 No. 1 (2026): February - June 2026

FROM BUDGET TO GROWTH: THE EFFECT OF EDUCATION SPENDING ON ECONOMIC GROWTH OF REGENCIES AND CITIES IN ACEH PROVINCE

Hidayat, Syarif (Unknown)
Susilo (Unknown)
Fazaalloh, Al Muizzuddin (Unknown)



Article Info

Publish Date
28 Feb 2026

Abstract

Purpose This research aims to analyze the effect of education spending toward economic growth across 23 regencies and cities in Aceh Province.. Design/methodology/approach This research uses exploratory research and quantitative methods. The population and sample are 23 regencies and cities in Aceh province consisting of 18 regencies and 5 cities. The type of data used is secondary data and the data source is from the Ministry of National Development Planning, Ministry of Finance and the Central Statistics Agency. The analysis model used is panel data regression by StataMP for districts/cities in Aceh province from 2010-2023. Findings The findings in this research are that education spending, per capita income, and GRDP significantly effect to economic growth, meanwhile Fixed Capital Formation and Population Growth show no effect to economic growth in regencies and cities across Aceh Province 2010-2023, despite accounting for only 20% of government expenditureor 2% of total GRDP. These results indicate that regional education spending plays a critical role in fostering economic growth in Aceh. Research limitations/implications This study is limited to regencies and cities within Aceh Province, which may restrict the generalizability of the findings to regions with different administrative and fiscal frameworks. Future research could integrate qualitative educational quality indicators alongside budgetary data. Originality/value This paper offers empirical insights into subnational fiscal policy effectiveness by assessing the longterm relationship between local education allocations and regional economic performance across Aceh Province.

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Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...