The Effect of Local Government Expenditures on Agriculture and Non-Agricultural Sectors toward Job Opportunities, Outputs and Poverty in Southeast Sulawesi Province, Indonesia
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 6
Abstract
The government has greater financial resources than the private, so the government spending on the economy is relatively bigger than private investment. Therefore, to achieve the objectives of economic development effectively, the determination of government spending is needed to carry out appropriately according to the regional potential. In Southeast Sulawesi Province, Indonesia, the government spending on the agricultural sector is about 5.77 percent from the total expenditure. The goal of this study is to determine the effect of regional government spending on the agricultural and non-agricultural sectors toward the employment opportunities, output and poverty. This study uses an econometric model with simultaneous system equations to estimate the time series data from 2003-2015 period. The estimation results show that the increase in regional government spending does not significantly increase the labors absorption and output value, and reduce the number of poverties.
Authors and Affiliations
Muhammad Arief Dirgantoro, Putu Arimbawa Budiyanto
Keywords
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- EP ID EP422789
- DOI 10.9790/5933-0906024855.
- Views 161
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