Government Spending and Regional Economic Growth: The Mediating Effect of Human Development Index (original) (raw)
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International Journal of Advances in Social Sciences and Humanities
This research aims to analyze the effect of government spending on health, education, and infrastructure on affecting the human development index (HDI) in Simalungun Regency partially and simultaneously. This research uses multiple linear regression analysis models. Sources of data used in the form of secondary data obtained from the publication data of the Central Statistics Indonesia (BPS) and data Regional Development Planning Agency (BAPPEDA) Simalungun Regency with the period 2003-2020. Partially, the variables of government spending in the health, education, and infrastructure sectors have a positive and no significant effect on the human development index in Simalungun Regency. Meanwhile, simultaneously, government spending variables in the health, education, and health sectors have a significant effect on HDI in Simalungun Regency. And then Government spending in the infrastructure sector has the most dominant effect on HDI in Simalungun Regency compared in health and educat...
Journal of Social and Development Sciences, 2015
In many countries, include Indonesia, a centralized government has a sizeable negative impact on inequality of development. During the New Regime Order era with a centralized system, Indonesia's development is concentrated in the western part of Indonesia which had led to inequality in terms of per capita income and human development. To solve these problems, one of the economic reforms undertaken by the Indonesia government is changes the system from a centralized to a decentralized system. Through the fiscal decentralization under Law No. 22/99 and 25/99, they hope to improve people's welfare and reduce inequality. This research is aim to assess the effect of government spending and investment on the growth of per capita income and see the effect of the growth of per capita income towards Human Development Index (HDI). The method used is multiple regression with panel data and the study from year 2007-2012 by dividing the two groups of regions ie: western Indonesia and cen...
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This study aims to estimate the association between government expenditure and human development index (HDI) in Indonesia. Due to inequal HDI attainment, this study focuses on 12 provinces which categorized as provinces with low level of HDI in Indonesia. This study employs fixed effect model (FEM) panel data analysis on provincial level datasets from 2010 to 2018. This study found that the increase of government expenditure on education significantly increases HDI, while government expenditure on health has no significant association with HDI. Major finding of the study highlights the role of gross regional domestic product (GRDP) per capita in increasing HDI on 12 provinces in Indonesia. Keywords: Government expenditure on education, government expenditure on health, HDI, FEM.
SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
This study investigates the effect of economic growth, education expenditures, and health expenditures on human development index (HDI) in Jambi Province. This study used panel data of 11 district/cities from 2012 to 2019. The analytical approach was quantitative by applying panel data regression models. The findings of the study indicated that the economic growth, education expenditure, and health expenditure had a significant and positive influence on the human development index. The implication of the model in this study shows that the efforts made by the Jambi provincial government are effective and optimal in allocating education and health spending to encourage increased human capital as measured by a high human development index. This is input in structural reforms in the education and health sectors to ensure that skilled human resources are developed in areas critical to economic development.
IOSR Journal of Humanities and Social Science, 2012
This research is carried out at Jeneponto regency in South Sulawesi based on the data from 1998 until 2007. We use multiple regression models to estimate and analyze the effect of government expenditure on human development index in Jeneponto. The result of this study shows that the allocation of government expenditure on education, health and infrastructure have a positive and significant effect to improve Human Development Index in Jeneponto regency during the period of investigation.
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This study aims to analyze the effect of Regional Expenditure on Education and Health derived from the APBN and APBD, Domestic Investment, and Foreign Investment on the Human Development Index in Eastern Indonesia. This study uses the panel data analysis method. The research data use time series data from the 2015-2019 period and cross-section data on 13 provinces in Eastern Indonesia. The variables used in this study are the HDI as the dependent variable, then the Education and Health Deconcentration funds, Education and Health Function Expenditures, DDI and FDI Investment Realization as independent variables. The results showed that regional expenditure in the field of education originating from the APBN had a significant negative effect on HDI in Eastern Indonesia, regional expenditure in the field of education originating from the APBD had a significant positive effect on HDI, regional expenditure in the field of health originating from the APBN had a negative and insignificant...
A Panel Approach: How Does Government Expenditure Influence Human Development Index?
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This study investigates the influence of government spending on education index, health index, income index of regional, under-develop and develop governments in East Java, Indonesia. In addition, this paper estimates the influence of government spending on the development of cities and districts in East Java. This study applied a quantitative approach by using the Fixed Effect Model and Random Effect Model as the panel data analysis method. There were 38 cities and districts used as the analysis units during 2010-2015. The findings showed that government spending on education, health, and economic has a positive significant influence on every component of human development index. In addition, government spending on infrastructure has a significant influence on the education index and income index yet it does not significantly influence the health index. Furthermore, this study provided the different results of government spending on under-developed and developed regions. Keywords: ...
East Java province in the 2011-2018 period had spread of the Human Development Index (HDI) which is not evenly distributed in each district and the city. So this causes East Java province is in the classification of Medium Human Development (medium human development). It is thus important to know the factors that affect the Human Development Index in the province of East Java. In this study will be seen how the variables influence economic growth, government expenditure education sector, health sector, and infrastructure to the Human Development Index in the province of East Java in 2011-2018 and Local Government's strategy to improve the Human Development Index of East Java Province.
IJISRT, 2019
The purpose of this study is to examine the effect of regional fiscal health on the human development index and the role of mediating regional government performance. Regional fiscal health measured with Brown indicator that modified according to Indonesian conditions, using the PLS-SEM approach model, with 1,125 observations of autonomous regions data in Indonesia in 2012-2016. This study proves that there is significant influence between regional fiscal health on human development index, between fiscal health on regional government performance, between regional government performance on human development index, and the role of partial mediation of regional government performance between the relationships of regional fiscal health to human development index. The main contribution of this study is to improve the understanding of the relationship of regional fiscal health as measured by the Brown indicator on the performance of regional governance and its implications for the human development index. This paper shows that Indonesia successfully applied the New Public Management paradigm.
Can Regional Spending Management Policies Improve Human Development Index?
The Journal of Indonesia Sustainable Development Planning, 2022
The management of expenditure carried out by local governments until now is considered not effective and efficient enough, so the government, through Law Number 1 of 2022 (articles 146 and 147) seeks to increase the effectiveness of regional expenditure in regional development by regulating the proportion of employee spending and public service infrastructure spending. This article aims to evaluate regional spending management policies in increasing Human Development Index (HDI) in the Bima regency. This regency was chosen as the research location because it has a fairly large employee expenditure allocation which is 49.29 percent of the total regional expenditure, with an increase in HDI of 0.36. Data analysis was carried out using Tableau applications and cost-effectiveness analysis. The results show that in comparison to other Indonesian eastern districts, the Bima region does not manage regional expenditures efficiently. Meanwhile, the results of the 2022-2025 HDI forecast only increased by 0.611 per year. The estimated HDI in 2024 is 69,02863, which is still far below the 2024 HDI target of 75.54. Suggestively, the Bima regency needs to allocate budgets selectively for the HDI driving sector and decrease the employee spending rate.