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Abstract

This study aims to determine the relationship between local government spending, agricultural productivity, and poverty in Indonesia for the period of 2005-2008. Using econometric models of the panel and panel- simultaneous, this study find the evidence that local government spending on infrastructure and education significantly affect agricultural productivity and poverty. The study also found that the value of multiplier effect of local government spending on poverty, roads is the largest, followed by education (the literacy rate) and irrigation.

Bahasa Abstract

Studi ini bertujuan untuk mengetahui hubungan antara pengeluaran pemerintah daerah, produktivitas pertanian, dan kemiskinan di Indonesia selama periode 2005-2008. Dengan mempergunakan model ekonometrika panel dan panel-simultan, studi ini membuktkan bahwa pengeluaran pemerintah daerah di sektor infrastruktur dan pendidikan signifikan memengaruhi produktivitas pertanian dan kemiskinan. Studi ini juga menemukan bahwa efek pengeluaran pemerintah daerah terhadap kemiskinan paling besar ditunjukkan oleh panjang jalan, diikuti tingkat melek huruf dan irigasi.

References

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[16] Younger, J.S. (2010). Long term development of Jakarta. Globe Asia, Agustus.

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