THE EFFECT OF GOVERNMENT EDUCATION SPENDING ON ECONOMIC GROWTH THROUGH SCHOOL ENROLLMENT IN INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 3 ◽  
pp. 109-123
Author(s):  
Nur Indah Lestari

This paper examines the effect of government spending on education on growth as an indirect process through enrollment rate, specifically in Indonesia. Using a panel data set of 26 provinces from 2000 to 2010 and applying fixed effect approach of panel regression, we find that government spending on education has a positive relationship with enrollment with one-year lag; also, the data show that enrollment affect growth significantly. By enacting the chain rule, government spending on education has a positive effect in economic growth indirectly. Together, these findings suggest that raise government spending on education can increase enrollment rate and enhance economic growth. 

2020 ◽  
Vol 20 (1) ◽  
pp. 288
Author(s):  
Megawati Megawati

Government expenditure for education increases every year for the implementation of education sector including to increase the number of enrollment rate. However, there are some children who do not enroll in school especially senior high school-aged children. This study examines the effects of government spending on education on school enrollment in Indonesia. This research uses cross-sectional data from the National Socioeconomic Survey (Susenas) and the government spending on education data for four years. This study uses probit model by employing the government education spending as the main factor. The control variables used in this study consist of parents’ education, household expenditure, male, urban, birth order, the number of siblings, missing parent, GRDP per capita, year dummy, and interaction terms among some variables. The observation is divided into two groups of age: 7-15 and 16-18. The results show that the government education spending has a positive and significant effect on school enrollment in Indonesia. In addition, the interaction terms show that the government education spending is associated with greater probability of school enrollment for poor children and for the girls.


2019 ◽  
Vol 4 (2) ◽  
pp. 193
Author(s):  
Endang Triwidyati ◽  
Nining Purnamaningsih

Changes in the average value of economic activity from one year to another by taking the average at the same time" is a brief definition of economic growth. This study aims to determine the effect of exports, government spending and labor force working on economic growth in Tulungagung. The type of data used in this study is secondary data on exports, government spending and labor force working in 2008-2017 in the form of quantitative time series, with multiple linear analysis and classical assumption tests as data analysis methods. The results showed that (1) there was no significant positive effect of exports on Tulungagung's economic growth. (2) The effect of government spending on economic growth in Tulungagung is significantly positive. (3) The effect of the labor force working on economic growth from Tulungagung is positive insignificant. Perubahan nilai rata-rata dari kegiatan ekonomi dari tahun untuk satu periode ke periode yang lain dengan mengambil rata-ratanya dalam waktu yang sama” adalah definisi singkat dari pertumbuhan ekonomi. Penelitian ini bertujuan untuk mengetahui pengaruh ekspor, pengeluaran pemerintah dan angkatan kerja yang bekerja terhadap pertumbuhan ekonomi di Tulungagung. Jenis data yang digunakan dalam penelitian ini adalah data sekunder ekspor, pengeluaran pemerintah dan angkatan kerja yang bekerja pada tahun 2008-2017 dalam bentuk time series yang bersifat kuantitatif, dengan analisis linier berganda dan uji asumsi klasik sebagai metode analisis data. Hasil penelitian menunjukkan bahwa (1) tidak ada pengaruh positif yang signifikan dari ekspor terhadap pertumbuhan ekonomi Tulungagung. (2) Efek dari belanja pemerintah terhadap pertumbuhan ekonomi di Tulungagung positif signifikan. (3) Efek dari angkatan kerja yang bekerja dalam pertumbuhan ekonomi dari Tulungagung positif tidak signifikan.


2021 ◽  
Vol 10 (1) ◽  
pp. 63-76
Author(s):  
Agus Sriyanto ◽  
Sri Murwani ◽  
Eleonora Sofilda

We study the budget stimulus effects and government spending to help foster the recovery of Indonesia's current economic growth that was hit by the monetary crisis 1997 and 2008. Using government spending allocation policies through capital expenditures, infrastructure expenditures, financing through government debt, private debts, and increased productivity through export and import activities. This research provides to proves the extent to which macroeconomic variables could promote Indonesia's economic growth due to the crisis—using quantitative analysis of time series in the analysis of cointegration autoregressive distribution lag and bounds testing cointegration starting from 2001 Q4 to 2018q4 data. We can prove that in the short term, the most influential factor in economic growth is the first lag of the GDP growth itself; The first lag of exports, and the first lag of government spending and imports. However, some factors still negatively affect corruption control, government effectiveness, and government debt. While in the long term, government expenditure and imports still have a positive effect, but corruption control is still hurt GDP.JEL Classification: G18, O47How to Cite:Sriyanto, A., Murwani, S., & Sofilda, E. (2021). Government Stimulus Policy Effects to Foster Indonesia's Economic Growth: Evidence from Seventeen Years' Experience. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 63-76. https://doi.org/10.15408/sjie.v10i1.15480.


2020 ◽  
Vol 22 (2) ◽  
pp. 1-14
Author(s):  
Filip Bugarčić ◽  
Petar Veselinović

The openness of the economy and its intensive involvement in international trade and economic flows has an important role in stimulating economic growth and development of a national economy. The aim of the research is to determine the degree of impact and effects of exports, imports and foreign direct investment (FDI) on economic growth. The applied research methodology is a panel regression analysis on the example of six countries in the Western Balkans region in the period from 2000 to 2018. Three hypotheses were tested in this paper. H1: Exports have a positive effect on economic growth; H2: Imports contribute to GDP growth; H3: FDI has a positive impact on economic growth. The results show that all three variables have a positive, statistically significant impact on GDP. The greatest effect on economic growth in the analyzed sample has exports, which implies the conclusion of the inevitability of more intensive participation of these economies in international trade flows.


2019 ◽  
Vol 46 (7) ◽  
pp. 1365-1379 ◽  
Author(s):  
Elina De Simone ◽  
Mariangela Bonasia ◽  
Giuseppe Lucio Gaeta ◽  
Lorenzo Cicatiello

Purpose Making citizens able to monitor and evaluate public spending activities is a fundamental issue in public financial management literature. The purpose of this paper is to analyze whether fiscal transparency, measured by the Open Budget Index, has an effect on public spending performance, measured by the World Economic Forum’s Global Competitiveness Report data. Design/methodology/approach Research methods rely on random-effects panel regression models on a country-level panel data set of 82 world countries observed in the 2008–2015 time interval. Findings Results show that the potential positive effects of fiscal transparency are mediated by the level of democracy of the country. In detail, in democratic countries, a higher degree of disclosure of fiscal information is correlated with a higher efficiency of government spending while, in non-democratic countries, fiscal transparency does not seem to provide any effect. Social implications The results suggest that fiscal transparency can be a powerful device where politicians can be held accountable for their actions, while it could fail to provide positive results where a strong and effective vertical accountability is missing. Originality/value The novelty of the paper is twofold. First, it provides new additional evidence about the positive effect that fiscal transparency has on public spending efficiency by advancing previous research on this topic (Porumbescu, 2017; Montes et al., 2019). Second, the paper investigates conceptually and empirically how the positive effect on public spending efficiency determined by fiscal transparency depends on the degree of democracy present in the institutional environment in which fiscal information disclosure is implemented.


2008 ◽  
Vol 8 (2) ◽  
pp. 175-209 ◽  
Author(s):  
Jing Chen

Although it is commonly believed that democracy promotes public services such as education, efforts have just started to evaluate empirically how the recent trend of democratization affects education services in the developing world. This article reports on the first regionwide investigation in East Asia. By studying the effects of democracy on multiple education indicators in a time-series-cross-section dataset of eight East Asian countries/political entities, the article examines whether democratic governments increase education spending and access and which social groups are favored in the process. The statistical results, which are corroborated by findings from two case studies, show that democracy plays a progressive role in promoting education spending and school enrollment at the basic level in East Asia.


2020 ◽  
Vol 6 (1) ◽  
pp. 101
Author(s):  
Dewi Purwanti

Zakat is obligatory for all Muslims while infaq and alms are sunah. Zakat, infaq, and alms (ZIS) make distribution of wealth from the rich to the poor people. If the poor people are able to fulfill their basic needs, they can work well and contribute positively to the economy in various sectors. Zakat, infaq, and alms are expected to be one of the alternative policies to increase economic growth. However, to find out whether zakat, infaq, and alms have succeeded in positively contribute to economic growth, research is needed to prove the existence of the influence of zakat, infaq and alms in Indonesia. The purpose of this study is to determine the effect of zakat, infaq, and alms on the economy. This study uses a panel regression analysis with driscoll and kraay standars errors. The results of this study showed that zakat, infaq, and alms have positive effect on Indonesia's economic growth.


2015 ◽  
Vol 3 (1) ◽  
pp. 51
Author(s):  
Iga Petiana ◽  
Dicky Iranto ◽  
Agus Wibowo

This research was conducted by observing the level of education graduate workforce, government spending and education sector gross regional domestic product per capita on the basis of constant prices of 2000. In particular the period of 2008-2012 by ex post facto method. The form of panel research data i.e. the combination of the form of time series and cross section. Data on GDP per capita over the constant prices of 2000 and the education level of the labour ditamatkan taken from the Central Bureau of statistics (BPS). Data on government spending on the education sector budget data taken from the income and expenditure of the State (APBN) Indonesia to education sector of the Ministry of Finance of the Republic of Indonesia. Processing data using Eviews 7.0 program and Microsoft Excell. Based on the results of the regression, the influential education variable is positive and significant at levels significantly below 0.05 and variable expenses of government education sector a positive and significant effect on under 0.05 i.e. against economic growth. The value Fhitung (7.360407) Ftabel > (3.90) so summed up these two variables, namely educational level of manpower and Government spending education sector together effect on Indonesia's economic growth. The value of R2 0.568211 signaling that 56,82% economic growth in Indonesia could be explained both the variable indipenden.   Keywords: economic growth, education, employment and Government spending on Education Sector.  


Author(s):  
Merri Anitasari ◽  
Ahmad Soleh

Merri Anitasari, Ahmad Soleh; Pengaruh Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Provinsi Bengkulu. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh dari pengeluaran pemerintah terhadap pertumbuhan ekonomi di provinsi Bengkulu dengan menggunakan data sekunder periode pengamatan tahun 2001-2012 yang diperoleh dari Badan Pusat Statistik. Hasil analisis dengan menggunakan SPSS 16 menunjukkan bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di provinsi Bengkulu. Jika pemerintah menaikkan pengeluaran pemerintah sebesar 1 miliar rupiah, maka akan dapat meningkatkan pertumbuhan ekonomi sebesar 1,17 % per tahun. Sedangkan pengaruh pengeluaran pemerintah terhadap pertumbuhan ekonomi di daerah kabupaten/kota menunjukkan bahwa dari jumlah 10 kabupaten/kota di Provinsi Bengkulu, kabupaten Rejang Lebong dan kota Bengkulu yang memiliki hasil bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di daerahnya. Kabupaten Bengkulu Utara memiliki pengaruh yang negatif sedangkan 7 kabupaten lainnya memiliki hasil yang positif namun tidak signifikan. Sebagian besar kabupaten di Provinsi Bengkulu dikategorikan sebagai daerah yang baru membangun yang merupakan hasil pemekaran pasca pemberlakuan otonomi daerah. Sehingga dalam jangka pendek pengeluaran pemerintah dianggap belum mampu menstimulus kegiatan sektor-sektor perekonomian serta memacu pertumbuhan ekonomi di daerah tersebut.Merri Anitasari, Ahmad Soleh; Impact of Government Spending on Economic Growth In Bengkulu Province. The purpose of this study was to analyze the impact of government spending on economic growth in the province of Bengkulu using secondary data observation period 2001 - 2012 year were obtained from the Central Bureau of Statistics. Results of analysis using SPSS 16 shows that government spending and significant positive effect on economic growth in the province ofBengkulu. If the government raised government spending by 1 billion dollars, it will be able to boost economic growth by 1.17% per year. While the effect of government spending on economic growth in the district/city showed that of a total of 10 districts cities in Bengkulu province, Rejang Lebong district and Bengkulu City which has the result that government spending and significant positive effect on economic growth in the region. North Bengkulu has a negative effect, while seven other districts have a positive outcome, but not significantly. Most districts in the province of Bengkulu categorized as new building is the result of the division after the implementation of regional autonomy. So in the short-term government spending is considered not able to stimulate activity sectors of the economy and spur economic growth in the area.Key Word: Government Spending, Economic Growth, Bengkulu Province


2021 ◽  
Vol 4 (1) ◽  
pp. 69
Author(s):  
Dewa Putu Sudibya Sukmaadi ◽  
A.A.Istri Ngurah Marhaeni

Bali Province shows a prominent performance in the development of the tourism sector. However, essential problems were found related to inequality in the distribution of income between regions. The aim of this study was to analyze the effect of locally-generated revenue, education spending, health spending, investment and infrastructure on economic growth and inequality in income distribution between districts/cities in the province Bali. This study uses a quantitative approach. The study explores panel data that combines time series and cross section data from the Regency / City of Bali Province during 2010 - 2017. The data analysis method uses path analysis. The results showed that local revenue, education spending, government spending on health, investment, and infrastructure had a positive effect on economic growth and reduced income inequality between regions. Economic growth is also able to mediate the influence of variables on inequality. The findings of this study emphasize the importance of planning coordination from each district and city to mutually commit to mobilizing all local resources such as human resources, finance, investment and infrastructure; to generate economic growth and reduce inequality between regions.JEL Classification  E27; H75; R58


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