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GOVERNMENT SPENDING AND ECONOMIC GROWTH: THE CASE OF LOCAL GOVERNMENT IN INDONESIA

Ananta Sugiyarto, Prof. Hiroaki Miyamoto

2012 | Tesis | S2 Magister Ek.Pembangunan

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This study studies estimates an effect of local government spending on growth in Indonesia cities and regencies by using panel data analysis during 2007-2009. This study focused on spending categories: services, economy, housing and public facilities, health, education, and social securities, which are expected to be growth-enhancing, and their sources of finance (original local revenue, local tax revenue and inter-governmental transfer). This study also shows that government spending is affected by size of regencies/cities which measured by population. This paper founds spending on education seems to have the strongest effect on economic growth at the local level.

Kata Kunci : economic growth, indonesia goverment


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