Government Expenditure according to Functions and Economic Growth in Indonesia
DOI:
https://doi.org/10.55927/eajmr.v2i5.3957Keywords:
Government Expenditure, Economic Growth, Autoregression VectorAbstract
The purpose of this study is (1) To analyze the causal relationship of government spending based on functions with economic Growth in Indonesia and (2) To analyze the impact of government spending based on functions on economic growth. The data used in this study is panel data for all provinces in Indonesia from 2005 – 2020. The data collection technique used is a documentation technique, with all data collected being secondary data. These data were obtained from the Central Bureau of Statistics (BPS), Ministry of Finance. Research results show that variable financial spending has a positive relationship between Economic Growth, variable government spending the Education function has a positive relationship between Economic Growth and government spending on the Education function, Variable government spending on housing and public facilities has a positive relationship between Economic Growth, variable government spending on housing and public facilities has a positive relationship between government spending on housing and public facilities with Economic Growth, variable spending government economic function has a positive relationship between Economic Growth and government spending the Economic function, Variable government spending the tourism function and culture has a positive relationship between Economic Growth, variable government spending public service function has a positive relationship between government spending public service function with Economic Growth , variable government spending function order and security has a positive relationship between Economic Growth.
References
Atmanti, Hastarini Dwi .( 2016). The efficiency of Government Spending For Human Development Some Districts in Central Java During 2008 – 2012. Journal of Developing Economies December 2016; 01(2):29-36.
Devino, Jose Angelo., Maciel. Daniel TGN., Sosa. Wilfredo (2019). Government size, the composition of public spending, and Economic Growth in Brazil. Journal Pre-proof 6 August 2019. https://doi.org/10.1016/j.econmod.2020.06.001
Idris, Amiruddin. (2018). Public Economics. Deepublish. Ed 1. Yogyakarta
Interpretation, Ahmad. 2019. Philosophy of Science. Bandung
Irandoust, Manuchehr. (2019). Wagner on government spending and national income: A new look at an old relationship. Journal of Policy Modeling Volume 41, Issue 4, July–August 2019, Pages 636-646. https://doi.org/10.1016/j.jpolmod.2019.02.003
Ismail, Priyono Zaenudin. (2019). Economic Theory. Dharma Science
Khusaini, Mohamad .( 2019). Public Economy. UB Press.
Kim, Wong. (2019). Government Spending Policy Uncertainty and Economic Activity: US Time Series Evidence. Journal of Macroeconomics Volume 61, September 2019,103124. https://doi.org/10.1016/j.jmacro.2019.103124
Mangkoesoebroto, Guritno. 2010. Public Economics Edition-III BPFE. Yogyakarta
Mankiw, N. Gregory. (2003). Macroeconomics. Seventh Edition. Worth Publishers. ISBN-13: 978-1-4292-1887-0
Musgrave, Richard A. & Musgrave, Peggy. B. ( 2003). State finance in theory and practice. Jakarta, Erlangga
Nachrowi, D., Usman, Hardus., (2006). Popular and practical econometric approaches to economic and financial analysis. The publishing institution of the Faculty of Economics and the University of Indonesia.
Narayan, Paresh Kumar., Nielson, Ingrid., Smyth Russell. (2008). Panel data, cointegration, causality, and Wagner's law: Empirical evidence from Chinese provinces. China Economic Review 19 (2008) 297–307. https://doi.org/10.1016/j.chieco.2006.11.004
Narayan, Seema. , Rath, Badri Narayan., Narayan ,Paresh Kumar .(2012). Evidence of Wagner's law from Indian states. Economic Modeling 29 (2012) 1548–1557. https://doi.org/10.1016/j.econmod.2012.05.004
Olaoye, Olumide O., Eluwole, Oluwatosin O., Yesha, AzizA., Afolabi, Olugbenga, O. (2020). Government spending and economic Growth in ECOWAS: An asymmetric analysis. The Journal of Economic Asymmetries Volume 22, November 2020, e00180. https://doi.org/10.1016/j.jeca.2020.e00180
Prasetya, Ferry., Wulandari, Farah., Hutama, Ri Setia., (2011). Public sector experience, economic growth, and poverty in Indonesia. Indonesian Journal of Economics and Development Vol.X1 No.2, 2011: 99-116
Prasetyo, Ahmad Danu., Zuhdi, Ubaidillah. ( 2013). The Government Expenditure Efficiency towards the Human Development. Journal: Procedia Economics and Finance 5 ( 2013 ) 615 – 622. https://doi.org/10.1016/S2212-5671(13)00072-5
Pressman, S., 2000. Fifty Thinkers of World Economics. Translated by Triwibowo Budi
Santoso, Jakarta, PT. King of Grafindo Persada
Sedrakyan, Gohar Samvel., Candamio, Laura Varela. (2019). Wagner's Law vs. Keynes' Hypothesis is very different. Journal of Policy Modeling Volume 41, Issue 4, July–August 2019, Pages 747-762 https://doi.org/10.1016/j.jpolmod.2019.02.011
Shi , Yingying ., Sun, Shen ., Puyang, Guo . (2017). The Role of Infrastructure in China's regional economic growth. Journal of Asian Economics Volume 49, April 2017, Pages 26-41. https://doi.org/10.1016/j.asieco.2017.02.004
Sumardjoko, Imam (2020). Implications of Fulfillment of Mandatory Expenditures on Improving the Quality of public services in Indonesia. Defis Journal Edition 6. Volume VI. January – April 2020
Suparno, Heri. (2014). The effect of government spending on education, health, and infrastructure on economic growth and increased human development in East Kalimantan Province. Journal of Innovation in Business and Economics (JIBE) Vol. 5 No. 1 (2014). https://doi.org/10.22219/jibe.v5i1.2254
Wu, Shih-Ying., Tang, Jenn Hong. , Lin, Eric S. (2010). The impact of government expenditure on economic Growth: How sensitive to the level of development ?. Journal of Policy Modeling Volume 32, Issue 6, November–December 2010, Pages. https://doi.org/10.1016/j.jpolmod.2010.05.011
Zahara, Lulu Ervita. , Andini, Mutiara Shinta., Wulandari, Savitri. ,( 2020). Reference: Development of the composition of central government spending based on function, type, and organization. Center for budget review DPRI Expertise Agency.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Irwan Suriadi, Siti Sriningsih, Siti Fatimah
This work is licensed under a Creative Commons Attribution 4.0 International License.
