Open AccessPengeluaran Sektor Publik, Pertumbuhan Ekonomi dan Kemiskinan di Indonesia
Author(s) -
Ferry Prasetyia,
Farah Wulandari,
Ri Setia Hutama
Publication year - 2011
Publication title -
jurnal ekonomi dan pembangunan indonesia
Language(s) - English
Resource type - Journals
eISSN - 2406-9280
pISSN - 1411-5212
DOI - 10.21002/jepi.v11i2.184
Subject(s) - life expectancy , public sector , health sector , economics , poverty , public expenditure , economic sector , public health , infant mortality , economic growth , socioeconomics , demographic economics , public finance , developing country , environmental health , health services , medicine , population , economy , nursing , macroeconomics
The aim of this paper was to determine the effect of public sector expenditure to economic growth and poverty in all provinces in Indonesia during period 2006 to 2008. Using Full Information Maximum Likelihood (FIML) approach, the result showed that public sector expenditure on education and health sector had significant effect inboosting economic growth. In addition, the output produced by the education and health sector, both of the output had significant effect on economic growth. While, public sector expenditure on infrastructure had insignificant effect. Furthermore, this study showed that public sector expenditure on education and health also had significant effect in reducing the number of poor through the outcome such as form of school enrollment, literacy, infant mortality and life expectancy. On the other hand, the effect of economic growth to reduce the number of poor was not significant.