THE EFFECT OF SOCIAL PROTECTION EXPENDITURE AND EDUCATION EXPENDITURE ON POVERTY IN INDONESIA

Kurniati, Kurniati (2021) THE EFFECT OF SOCIAL PROTECTION EXPENDITURE AND EDUCATION EXPENDITURE ON POVERTY IN INDONESIA. Diploma thesis, Universitas Andalas.

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Abstract

This research is motivated by the phenomenon of poverty which is still a big problem in Indonesia development. The number of studies that focus on monetary poverty is one of the reasons for researchers to conduct research on multidimensional poverty. Government social protection and education expenditure is one that plays an important role in poverty alleviation, however the results of previous research are still ambiguous, so this topic needs to be discussed. This study uses panel data with a cross section of 29 provinces in Indonesia and the 2015-2018 time series. The research method used is the Quasi-Maximum Likelihood estimation (QML) Fixed-effects and Xtdpdqml. The variables used in this study are poverty as the dependent variable, government social protection expenditure and government education expenditure as independent variables, economic growth and unemployment as control variables. The results of this study is social protection expenditure had no significant effect on poverty, while government education expenditure had a significant negative effect on multidimensional poverty. Economic growth and unemployment have no significant effect on poverty.

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