THE EFFECT OF GOVERNMENT EXPENDITURE ON EDUCATION, HEALTH AND INFRASTRUCTURE TO POVERTY REDUCTION IN INDONESIA 1979-2014

IMAM, HADI WIJAYA (2016) THE EFFECT OF GOVERNMENT EXPENDITURE ON EDUCATION, HEALTH AND INFRASTRUCTURE TO POVERTY REDUCTION IN INDONESIA 1979-2014. Diploma thesis, UNIVERSITAS ANDALAS.

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Abstract

The aim of this research is to analyze the effect of government expenditure on education, health, and infrastructure to poverty in Indonesia through per capita income during 1979-2014. Per capita income (PCI) was used to proxy poverty reduction, government spending on infrastructure was proxied by; government spending on building and construction (GSBC), government spending on transportation (GSRT), government spending on education (GEE) and government spending on health (GEH). This research using secondary data from Ministry of Finance and Central Bureau Statistic of Indonesia. By using standard error correction model or ECM obtained an empirical research of which in the short-run, shows that government expenditure on education and government spending on road transport has a significant and positive relation to poverty reduction of Indonesia, while government spending on building construction has a significant and negative relation, and government expenditure on health has not significant and positive relation to poverty reduction of Indonesia. Keywords: Poverty, Per Capita Income, Government Expenditure, and ECM

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