PENGARUH BELAJA MODAL DAN BELANJA BANTUAN SOSIAL TERHADAP PERTUMBUHAN EKONOMI DAN KEMISKINAN

Abstract

This study aims to examine the effect of the variable capital expenditure (BM) and social assistance expenditure (BBS) on economic growth and poverty in Indonesia. The research was conducted with a span of observation time from 2010 to 2017 covering 33 provinces in Indonesia. The method used in this research is a panel data regression model, which is applied to the GRDP equation and the poverty equation (POV). Based on the test results, it is found that the appropriate model used to estimate the two equations is the fixed effect model. Estimates in the GRDP equation give the results that the variable capital expenditure (BM) and social assistance expenditure (BBS) have a significant and positive effect on GRDP. This means that the more spending is carried out, the greater the value of GRDP is positive. Meanwhile, the estimation on the poverty equation (POV) shows that the GRDP variable has a significant and negative effect on poverty. The variable of social assistance spending (BBS) has a significant and positive effect on poverty. Meanwhile, capital expenditure (BM) and the open unemployment rate (TPT) do not statistically significant impact on poverty. There is an assumption that the role of government spending on poverty occurs indirectly, but through output or GRDP..