THE EFFECT OF GOVERNMENT EXPENDITURE ON INCOME INEQUALITY AND POVERTY IN INDONESIA

INFO ARTHA

View Publication Info
 
 
Field Value
 
Title THE EFFECT OF GOVERNMENT EXPENDITURE ON INCOME INEQUALITY AND POVERTY IN INDONESIA
 
Creator Alamanda, Alamanda
 
Subject income inequality; poverty; infrastructure; social aid; subsidy; grant
 
Description Income inequality and poverty have become key issues in development studies since the 1970s. Although theoretically there are various factors associated with the incidence of poverty and income inequality, choices regarding the types and structure of government expenditure are often quoted as one of the crucial determinants. However, the evidence is still inconclusive, and the research about these issues in the case of Indonesia is still minimum. This paper tries to contribute to the discussion by analysing a panel data set of 33 provinces from 2005 to 2017 to examine the effect of different types of government expenditure on income inequality and poverty in Indonesia. Using the fixed effect, random effect, and Seemingly Unrelated Regression (SURE) system, this paper finds that social aid, subsidy and grant expenditure have an insignificant effect on reducing income inequality and poverty in Indonesia. However, the empirical evidence suggests that infrastructure spending has a negative correlation with income inequality in urban areas (when using the random effect model), and rural areas (when using the fixed effect model). In addition, infrastructure expenditure is also negatively and significantly correlated with poverty in Indonesia, and the impact is more significant in rural than urban areas.
 
Publisher Polytechnic of State Finance STAN
 
Contributor
 
Date 2020-03-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://jurnal.pknstan.ac.id/index.php/JIA/article/view/614
10.31092/jia.v4i1.614
 
Source INFO ARTHA; Vol 4, No 1 (2020): JULY EDITION; 1-11
JURNAL INFO ARTHA; Vol 4, No 1 (2020): JULY EDITION; 1-11
2581-0839
0852-6737
10.31092/jia.v4i1
 
Language eng
 
Relation http://jurnal.pknstan.ac.id/index.php/JIA/article/view/614/438
 
Rights Copyright (c) 2020 INFO ARTHA
http://creativecommons.org/licenses/by-nc-sa/4.0
 

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us

Twitter

Copyright © 2015-2018 Simon Fraser University Library