This study aims to test the hypothesis that explains the relationship between tax revenue and government spending in six Indonesian regions. Furthermore, the units of analysis were districts and cities in each region from 2006 to 2017, and a Granger panel causality approach was used. The results showed five experienced bidirectional causalities between tax revenues and local government spending out of the six regions, namely Java, Sumatra, Kalimantan, Sulawesi, and the Bali & Nusa Tenggara. Also, there was fiscal synchronisation in five regions, while the tax-spend hypothesis applies in the Papua & Maluku regions. Therefore, the local governments in these regions need to be careful in deciding actions related to increasing revenue. This can be achieved through the tax sector's optimisation and expenditure increment by encouraging public spending from the administration.
This paper aims to investigate the role of inflation, unemployment, and economic growth in explaining the prevalence of poverty in Bengkulu Province. The study used a time series data for 26 years . The data were secondarily sourced from statistics bureau. Ordinary least square (OLS) was used as an analytical technique. Empirical results show that inflation and unemployment have positive and economic growth has negative impact on poverty. The paper recommends to applied an appropriate macroeconomic policy which is crucial for poverty alleviation. To improve economic growth, efforts must be put in place to increase productivity; improving the level of local production. To restrain the surging rate of unemployment, it is necessary to creates a work training center, opening new economic centers, and linking education and skills needed in the labor market. Furthermore, there must be concrete efforts to controlling inflation, because inflation affects poverty mainly through its impact on real wage. In other word, inflation affects people's purchasing power.
During the COVID-19 pandemic, all regions in Indonesia have had negative economic growth. It also increased the poverty rate in the country. The government must allocate pro-growth and poverty reduction programs to maintain economic growth and simultaneously reduce poverty. This study aims to measure the relative efficiency of pro-growth poverty reduction spending of local governments in seven regions in Indonesia. This study compares the efficiency scores before and during the COVID-19 pandemic from 2015 to 2019 and 2020. The inputs are five types of government spending: education, health, economic, social protection, and infrastructure. The outputs are economic growth and poverty reduction. Data envelopment analysis with an output-oriented model and a return to scale variable approach is applied. The results show that the highest average local government efficiency score was in Kalimantan, with the lowest being in Sulawesi. The efficiency scores of local governments in the COVID-19 pandemic differ between regions: it remained stable in Kalimantan, increased in Java-Bali, Sumatra, and Sulawesi, and experienced a decline in Nusa Tenggara, Maluku, and Papua. The study concludes that economic growth and poverty reduction can simultaneously measure government efficiency. To be relatively efficient, local governments need to consider allocating pro-growth poverty reduction spending to improve the conditions of both outputs.
Special Economic Zones are very important for the progress of an area. SEZ is able to contribute to the regional economy and increase economic development by providing direct and indirect effects. The purpose of this study is to determine the impact of special economic zones on regional economic development. The object of this study is to explore the establish SEZ in Indonesia just only refer to two SEZs namely SEI Mangke and Tanjung Lesung. This research used literature study as a method. The results show that SEZ make the regional economy is starting to move towards a better direction. The role of two SEZs observed have different impact on regional economy, SEI Mangke has a positive impact on macroeconomy indicator such as reduced unemployment, reduced poverty and an increased economic growth rate in Simalungun Regency. Otherwise, Tanjung Lesung just has a positive impact on MSMEsKeywords: Unemployment, Poverty, Economic Growth, Pengembangan UMKM, SEZ Sei Mangke, SEZ Tanjung Lesung
This study assesses the causal relationship to see whether the investment will affect economic growth. The data was taken from 1970-2020 in unit percentages, so the results obtained will lead to the research objectives. This research is also the direction of the relationship between two variables using several tests, namely the Granger Casualty and Error Correction Model (ECM). The results show a one-way causal relationship between FDI and economic growth and determine the lag that has been tested. The optimal lag in the second year of FDI is proven to affect economic growth in Indonesia in two years. There is a long-term and short-term relationship when direct investment affects Singapore's economic growth in the period 1970-2020. As a developed country, the creation of a one-way causal relationship, foreign direct investment is proven to affect economic growth. Thus, compared to developing countries such as Indonesia, where the optimal lag test is carried out, the one-way relationship of foreign investment is proven to affect Singapore's economic growth within two years, including the long term. And the short-term relationship when direct investment involves economic growth.
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