scholarly journals Does Government Quality Spending can reduce Poverty? A Case in East Java Province

Author(s):  
Candra Fajri Ananda ◽  
Moh. Khusaini ◽  
Atu Bagus Wiguna

Objective - The poverty issue in East Java Province is an interesting research object. This phenomenon has retrieved in every fiscal year, although the intergovernmental transfer funds increase significantly annually. In the decentralization era, a region has been authorized to identify its problem and provide solutions based on their initiatives and preferences. The local government through their budget should focus on their problem solving, i.e. poverty alleviation. Utilizing panel regression, we found that government spending on education and health can reduce poverty rate. Methodology/Technique - OLS (Ordinary Least Squared) modelwas utilized to answer the objective of the study, that is, to see how the effect of government spending in various sectorson poverty alleviation. Findings - Using the panel regression model, this study found that government spending on education has a negative impact on poverty rate in the East Java Province. The impact on this variable appears to be statistically significant. Novelty - This study showed that central and local government should synchronize their proposed programs, reducing overlapped programs, to pursue a higher efficiency of budget management. Type of Paper - Empirical/Review Keywords: Quality Spending, Budget Deficit/Surplus, Poverty Alleviation. JEL Classification: H72, I31, I32.

2019 ◽  
Vol 2 (1) ◽  
pp. 27-33
Author(s):  
Marcus R. Maspaitella ◽  
Rully N. Wurarah ◽  
Henry A. Setiawan

Poverty is the main problem occurred in all developing countries, including Indonesia. Poverty rates in Indonesia are very various between provinces. Poverty alleviation also have strong association with the implementatation of programs and tasks derived from the government budgeding instument. This paper aims to analyse the influence of government spending on education and health on poverty rate in Papua Barat province. Sample in this research includes five regencies and one manicipality. Panel data regression was employed to estimate the fitted model. The results indicated that government spending on education has a significant influence on poverty reduction, meanwhile government spending on health has not been a significant driver for reducting the poverty rate. An important implication is that the the implementation of budgeting on education need to be increased by taking into account the effectiveness of its allocation, so that it is expected to connect with poverty alleviation through reducing unemployment and expanding job opportunities.


Author(s):  
A Dudau ◽  
G Kominis ◽  
Y Brunetto

Abstract Assuming that red tape is inevitable in institutions, and drawing on positive organizational behavior, we compare the impact of individual psychological capital on the ability of street-level bureaucrats (SLBs) with different professional backgrounds to work within the confines of red tape. The two SLB professions investigated here are nurses and local government employees; and the work outcomes of interest to this study are well-being and engagement. The findings show that red tape has a different impact on each professional group but, encouragingly, they also indicate that psychological capital has a compensatory effect. Implications include nurses requiring more psychological resources than local government employees to counteract the negative impact of red tape. A practical implication for managers is that, if perception of red tape in organizations is set to increase or to stay constant, enhancing the psychological capital of professionals in SLB roles, through specific interventions, may be beneficial to professionals and organizations alike.


2016 ◽  
Vol 31 (1) ◽  
pp. 63
Author(s):  
Agil Novriansa ◽  
Bambang Riyanto

The bureaucratic reform at the local government level in Indonesia that was instituted in 2012 has turned local government internal auditors into an important part of government governance systems. The role of local government internal auditors has been expanded to include not only the area of audit oversight, but also the areas of anti-corruption-related and consulting activities. These fundamental changes may potentially induce role conflict and role ambiguity among internal auditors. The objective of this study is to examine empirically the determinants and consequences of role conflict and role ambiguity among local government internal auditors. More specifically, this study attempts to examine the extent to which formalization determines role conflict and role ambiguity; it further tests the impact of role conflict and role ambiguity on commitment to independence and job performance. Questionnaires were distributed to 248 local government internal auditors from 12 Regional Inspectorates in the provinces of Yogyakarta, South Sumatra, and East Java. A total of 176 responses were received, and 124 useable responses from the 176 responses were analysed to test the hypotheses. Using Structural Equation Modelling-Partial Least Square the results show that: formalization is negatively related to role conflict and role ambiguity; role ambiguity has a negative impact on commitment to independence; role conflict has a positive impact on job performance; and role ambiguity has a negative impact on job performance. These findings serve as important external validity evidence on the phenomena associated with role conflict and role ambiguity that occur in the public sector, especially among internal auditors at local government institutions.Keywords: role conflict, role ambiguity, local government, internal auditors


2019 ◽  
Vol 11 (4) ◽  
pp. 993 ◽  
Author(s):  
Zhichao Li ◽  
Xihan Tan

Social capital plays a significant role in post-disaster community participation and disaster recovery. This study divides social capital into three aspects: Cognition, structure, and relation, and discusses the impact of these factors on community participation in post-disaster recovery. Through data analysis, we found that a self-organized relationship villager network had a positive effect on villagers’ participation in voluntary community activities after an earthquake, while the local cadre relationship network had a negative impact. However, the latter could encourage villagers to participate in disaster-recovery activities organized by the local government. These findings indicate that the mobilization mechanism for post-disaster local-government reconstruction and community self-organization are the same, both coming through the social-acquaintance network, a type of noninstitutionalized social capital. The implication of this study suggests that local government should attach much importance to the construction and integration of social networks in earthquake-stricken areas to cultivate community social capital.


2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.


2020 ◽  
Vol 23 (2) ◽  
pp. 189-210
Author(s):  
Nicholas Apergis ◽  

Given that the literature on the impact of natural disasters on house prices is highly limited, this paper combines data on natural disasters and house prices from 117 countries, which span the period 2000-2018 and a panel regression method to estimate the effects of natural disasters on house prices. The findings document that natural disasters lead to lower house prices, with the results surviving a number of robustness tests. When examining the impacts of natural disasters by type, the findings highlight that geological disasters exert the strongest (negative) impact on house prices. The results also illustrate the negative impact of those disasters on house prices when also taking the distinction between small and large disasters into account. The findings provide important implications for policymakers and property investors. Lower house prices in countries that experience natural disasters events could significantly signify lower consumption and investment (the wealth effect), with further negative spillovers to the real economy. Economic policymakers could implement low-tax policies or quantitative easing schemes to support these areas/countries. The findings exemplify the need for governments and policymakers to mitigate climate change effects on housing by adopting new and more environmentally friendly technologies and energy sources.


2020 ◽  
Vol 16 (1) ◽  
pp. 105-124
Author(s):  
Sutiyo ◽  
Andi Pitono ◽  
Tri Raharjanto ◽  
Jona Bungaran Basuki Sinaga

Microfinance has broadly been used to alleviate poverty and empower women in Indonesia. Many studies have already examined the microfinance performance but mostly on the basis of a client versus non-client comparative method. In this study, we measure the outreach of and impact of microfinance on poverty alleviation through random sampling of poor households. A case study was conducted at the district of Purbalingga to assess the most widespread woman microfinance in Indonesia, Savings and Loans for Women ( Simpan Pinjam Perempuan, SPP). While the SPP has a good repayment rate and asset growth, its performance in poverty alleviation is low. Only 18 per cent of the respondents ever benefitted from the SPP, which indicates low outreach to the poor. The impact on income generation and development of social capital as well as empowerment of the poor is weak. The causes are limited fund, lack of prioritisation to the poor and inexistence of assistance to loan utilisation. Institutionally, the SPP is not connected to the local government. These create a low sense of belonging and fund allocation from the local authorities. The continuity of the SPP requires a closer institutional linkage with the local government and bank institutions in order to have better assistance and budgeting while maintaining informality of loan disbursement.


2018 ◽  
Vol 8 (4) ◽  
pp. 239
Author(s):  
Badejo Bolaji Tinuke ◽  
Adekeye Adeshola Joseph

This research work was designed to examine the impact of Anchor Borrower Programme (ABP) on poverty alleviation in Argungu Local Government Area of Kebbi State. The main objective of the study is to investigate the extent to which the implementation of Anchor Borrower Programme (ABP) has encouraged poverty alleviation in the area of food supply, income generation, improvement in standard of living and income generation in the study area. Relevant data for this research work were collected from secondary sources through the content analysis of; documents, government publications, reports, quarterly magazines on Anchor Borrower Programme and data from Bureau of Statistics. At the end of the study, the research findings reveal that Anchor Borrower Programmes (ABP) supports for farmer have a positive and significant impact on poverty alleviation in the area of; food supply, employment generation, improved standard of living and income generation was substantial. However, the paper recommended that the Anchor Borrower policy in Nigeria should be encouraged and subjected to periodic review so as to provide more platforms for poverty alleviation in Argungu LGA of Kebbi State.


2018 ◽  
pp. 28-45
Author(s):  
I. V. Belyakov

The article explores the impact of government spending on the key components of economic activity in Russia, such as private consumption and investment. The author pays serious attention to the theoretical justifications of the possible impact of fiscal policy on economic growth and its components, as well as reviews the empirical results obtained in this area. In the empirical part of the article, government expenditures are represented by the “GDP by expenditure” items — government consumption and government investment. The results, for Russian data covering the period of 1995—2017, indicate a short-term positive impact of government spending on private consumption and a negative impact on private investment. It also proves important to take into consideration the changes in macroeconomic conditions that occurred approximately in the middle of the observed period.


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