Government fiscal policy impact analysis in infrastructure sector and educa-tion sector to improve public welfare

Nasution, Mustafa Edwin; Wahyudi, Imam

doi:10.20885/ejem.vol9.iss1.art6

Cited by 4 publications

(5 citation statements)

References 8 publications

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“…The allocation for long-term investments have led to the result of the investment have not been able to show an increase in economic activity in the short term, so that the high capital expenditure has not been followed by an increase in economic growth. This is in accordance with the research findings of Nasution & Wahyudi (2017).…”

Section: Evaluation Of Goodness Of Fit Model To Inner Modelsupporting

confidence: 94%

“…So the investment has a significant effect on economic growth (Simanjuntak et al, 2017). But difference with study of Nasution & Wahyudi (2017) stated that government spending have positive impact on economic growth, but in other direction also have a negative impact. Based on these descriptions then compiled the research hypothesis as follows: Hypothesis 4: capital expenditure has a positive significant effect on economic growth in regency/ city in Central Java Province.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 90%

“…Since 1990, United Nations Development Program (UNDP) adopted a new paradigm of development called the paradigm of human development index, the paradigm is to see human beings in terms of a more complex and comprehensive, as well as to take into the success of human development from the economic aspect, also take into the non-economic aspects. Based on this concept, human development means improving the human resources in the broadest sense includes physical and spiritual aspects, material, and spiritual in both individual and social scale, which in turn must be able to become comprehensive development resources (Nasution & Wahyudi, 2017). As well as economic development, human development requires the availability of data analysis for policy-making and planning for the right target and need to be evaluated to what extent the construction carried out to improve the quality of human life as an object of development.…”

Section: Introductionmentioning

confidence: 99%

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The Evaluation of Fiscal Decentralization Implementation

Badrudin

Mayangsari

2024

Wahana

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The objective of study is conducted in order to evaluate the fiscal decentralization in Central Java Province by analyzing the effect of fiscal decentralization on capital expenditure, economic growth, and social welfare in 35 districts in Central Java Province based on data from 2015 to 2019 with capital expenditure and economic growth as intervening variable. The Central Java Province is a province who does not have regional divisions so its originality or authenticity of the territorial integrity of the regional autonomy will be seen into force since 2001. The year of 2015 to 2019 is a 15-years period of fiscal decentralization implementation in Indonesia after 2001. The analytical method used is based on the Partial Least Square (PLS) which follows the structural equation model (SEM) model for testing hypothesis (α = 5%). The findings of study are fiscal decentralization has a positive significant effect on capital expenditure, economic growth, and social welfare; capital expenditure has a negative significant effect on economic growth but has a positive significant effect on social welfare; and economic growth has a positive significant effect on social welfare in regency and city in Central Java Province.

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Section: Evaluation Of Goodness Of Fit Model To Inner Modelsupporting

confidence: 94%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 90%

Section: Introductionmentioning

confidence: 99%

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The Evaluation of Fiscal Decentralization Implementation

Badrudin

Mayangsari

2024

Wahana

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“…To measure the asymmetric impact on private investment at sectoral level of public investment ( ), we segregate public investment in infrastructure, non-infrastructure, core infrastructure and service sector, considering importance of infrastructure investment as it leads to employment driven growth for emerging economies (Nasution & Imam, 2017). We consider public non-infrastructure investment as investment in mining & quarrying, manufacturing, trade, hotels & restaurants, financial services, real estate and business services, public administration, defence and other services (Chakraborty, 2016).…”

Section: Resultsmentioning

confidence: 99%

Government fiscal spending and crowd-out of private investment: An empirical evidence for India

Shankar

2021

EJEM

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Purpose ─ The paper evaluates the crowding-in or crowding-out relationship between public and private investment in India, controlling fiscal and monetary variables.Methods ─ In a flexible accelerator theoretical framework, the paper estimates long and short-run investment dynamics, employing Autoregressive Distributed Lag (ARDL) cointegration approach. We use a back series of national account statistics that incorporates enhanced coverage of the organized corporate sector.Findings ─ Our results suggest investment complementarity between the public and private sector at an aggregate and sectoral level over the period 1981-2019. Barring short-run crowding-out in construction and financial services at industry level, public investment stimulates private counterparts, both in the long and short-run. However, fiscal deficit, inflation expectation, and sovereign vulnerability influence private investment adversely. Moreover, the long-run crowding-out bearing of fiscal imbalance is quantitatively higher when the public sector invests in mining and manufacturing and insignificant with infrastructure.Implication ─ Sizable infrastructure investment as a proportion of government finances would moderate the adverse impact of the deficit on private investment. Further, quality fiscal adjustments and containing inflation would enhance private investment activities.Originality ─ Besides aggregate and sectoral levels, the study also evaluates the impact of industry-level public investment on private capital expenditure. This paper also incorporates derived variables in the regression framework using statistical filters and the principal component technique.

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“…Most of the existing studies indicate that government control causes a distortion of the operation of the CCBs to some extent, but how the risk is transmitted between the government, regional economy and the CCBs is not clear. In recent years, government debt and economic fluctuation have always been closely related to infrastructure investment [5,6]. However, there is still no clear analysis of how the risks were caused by this spread.…”

Section: Introductionmentioning

confidence: 99%

Economic Fluctuation, Local Government Bond Risk and Risk-Taking of City Commercial Banks

Zheng

Chen

Dong³

2021

Sustainability

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Countercyclical fiscal regulation can mitigate economic risk, but this is bound to increase the scale of local government debt during an economic downturn, and then spread risk to the banking sector, forming potential financial instability factors. We extracted the three most important variables in this process: economic fluctuation, local debt risk and bank risk-taking to build an econometric model and found that: (1) both economic fluctuations and local government bond risks have a significant impact on bank risk-taking, which is negatively correlated with local economic growth, while the increase of local government bond risks tends to increase bank risk-taking in the long run; (2) the impact of local government debt risk significantly increases the loans of city commercial banks flowing into the construction industry. Therefore, the impact of local government bond risk on city commercial banks is concentrated in the impact on their construction loans. This study has an important reference value for timely and moderate countercyclical regulation, preventing local debt risk from spreading to banks, constructing a sustainable local government−bank ecology, and promoting sustainable economic development.

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Government fiscal policy impact analysis in infrastructure sector and educa-tion sector to improve public welfare

Cited by 4 publications

References 8 publications

The Evaluation of Fiscal Decentralization Implementation

The Evaluation of Fiscal Decentralization Implementation

Government fiscal spending and crowd-out of private investment: An empirical evidence for India

Economic Fluctuation, Local Government Bond Risk and Risk-Taking of City Commercial Banks

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