Open AccessOne Decade, 20 Percent Education Budget: How About Causality Between Education Success and Poverty?
Author(s) -
Putu Yudy Wijaya,
Nyoman Reni Suasih
Publication year - 2021
Publication title -
jurnal ekonomi kuantitatif terapan
Language(s) - English
Resource type - Journals
eISSN - 2303-0186
pISSN - 2301-8968
DOI - 10.24843/jekt.2021.v14.i01.p09
Subject(s) - poverty , government (linguistics) , subsidy , causality (physics) , economics , panel data , granger causality , economic growth , government budget , demographic economics , development economics , public finance , macroeconomics , econometrics , linguistics , philosophy , physics , quantum mechanics , market economy
In 2019, exactly one decade of the government expenditure on education in Indonesia (central and local government) was allocated 20 percent. The purpose of this study was to analyze the causality relationship between government budget on education, education success (proxied by the mean years of schooling), and poverty (proxied by the number of poor people) in Indonesia. The data analyzed is secondary data, to be precise panel data from 34 provinces in Indonesia over a period of five years (2015-2019). The analysis technique used is the Granger Causality Test. The results showed that the government budget on education had a significant effect on the mean years of schooling and had a causal relationship with poverty. Meanwhile, poverty has been shown to affect the mean years of schooling. Based on the results of this analysis, it is for the government to consistently prioritize the budget for the education sector because it is proven to have an impact on education success and poverty alleviation. In addition, the government also needs to pursue poverty alleviation programs such as subsidizing cash assistance for student in poverty.