Efficiency of public spending and welfare in Indonesia

Bibliographic Data

ID22189037
AuthorsIvana Nina Esterlin Barus (University of Brawijaya), Erwin Saraswati (0000-0002-8936-2045, University of Brawijaya), Roekhudin Roekhudin (0009-0000-5088-0331, University of Brawijaya), Sari Atmini (0000-0002-8194-477X, University of Brawijaya)
Year2024
Volume8
Issue15
Pages9270
Publication date2024-12-12
Open AccessYes
TypeARTICLE
VenueJournal of Infrastructure Policy and Development (JOURNAL)
Journal identifiersISSN: 2572-7923 • E-ISSN: 2572-7931
PublisherEnPress Publisher (PUBLISHER)
DOI10.24294/jipd9270
OpenAlexW4405266783
LanguageEN
References cited12

Poverty is a major challenge caused by various situations as well as cultural, social, economic, and political interactions. Therefore, poverty alleviation programs and strategies require an integrated approach carried out in consistent and organized stages. It required the participation of all parties, both regional heads, Regional People’s Representative Assembly (RPRA) members, entrepreneurs, and other elements of society. This study aimed to investigate the effect of local spending efficiency on public welfare in Indonesia, using a quantitative and explanatory method. The analysis method used in this study is the panel data regression model. The research population in all provinces in Indonesia was 34 provinces, and a purposive sampling method was used, where a total of 26 provinces were selected. The research period is 2017–2021. The efficiency of local spending (education, health, and infrastructure) is estimated using the Stochastic Frontier Analysis (SFA) cost function approach. The results showed that the higher the efficiency of education spending, the more it will increase public welfare in Indonesia. Meanwhile, the health spending efficiency and the infrastructure spending efficiency do not affect public welfare. The implications of this study for the development of science are that the efficient allocation of education spending will be able to improve the quality of education which is a long-term solution to overcome poverty in Indonesia and for policymakers to be able to optimize education spending to achieve the expected educational goals

Economics · Market economy · Political science · Politics · Public economics · Public spending · Public welfare · Welfare · Fiscal Policy and Economic Growth

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Open DOIOpen Access