Impact of Government Expenditure on Education, Social Protection, Public Services, Infrastructure, Community Empowerment, Investment, and HDI on Economic Growth in Indonesia's 3T Regions
Main Article Content
Rafika Wardani Pulungan
Rahmanta
Sya'ad Afifuddin Sembiring
This research aims to determine the influence of government spending in the fields of education, social protection, public services, infrastructure, community empowerment, investment, and the Human Development Index (HDI) on economic growth in Indonesia's 3T (Disadvantaged, Frontier, Outermost) regions. This study employs quantitative research methods, with a population and sample comprising 62 regions designated as 3T in Indonesia. Data analysis was conducted using panel data regression analysis with the EViews 10 software. The results reveal that government spending on education (BFPEND), public services (BFPU), and community empowerment (BDPM) does not significantly influence economic growth. However, government expenditures on social protection (BFPS) negatively and significantly affect economic growth, while spending on infrastructure (BFINF) and investment (INVEST) positively and significantly impact economic growth. Additionally, the HDI has a negative and significant effect on economic growth. Collectively, government spending across these sectors, along with HDI, has a positive and significant effect on economic growth in Indonesia's 3T regions. A comparison of the average HDI in Disadvantaged Regions versus Frontier and Outermost Regions in Indonesia is also presented.
Abdillah, I. I., & Primitasari, N. (2023). Analysis of the Influence of Government Expenditures in the Education, Health, and Infrastructure Sectors on Economic Growth in the Eastern Region of Indonesia. Journal of Applied Economics, 7(3), 494–503.
Adit, A., & Qibthiyyah, R. M. (2022). The Impact of Village Expenditures and Social Capital on Rural Industry. Indonesian Treasury Review Journal of State Finance and Public Policy, 7(2), 145–159.
Aini, R. (2020). Analysis of the Effect of Government Expenditures in the Education, Health, and Social Protection Sectors on Poverty in Districts/Cities in East Java. Diponegoro University Economic Journal, 8(2), 50–75.
Ainia, C., Suharso, P., & Hartanto, W. (2023). Analysis of Factors Affecting the Human Development Index in 7 Disadvantaged Regions on Sumatra Island, 2016-2020. JAMI: Journal of Young Indonesian Experts, 4(1), 81–88. doi:10.46510/Jami.V4i1.128.
Alvaro, R. (2021). The Influence of Investment, Labor, and Exports on Economic Growth. Budget Journal, 6(1), 114–131.
Ananda, I. A., Sukmawati, U. S., & Kidrian, E. (2021). The Influence of Government Expenditures in the Education and Health Sectors on the Human Development Index (HDI) in the Border Areas of West Kalimantan Province, 2010-2019. Cross-Border, 4(2), 429–452.
Angraini, D. (2020). The Influence of Government Expenditures in the Economic Sector and Public Services on Economic Growth in Jambi Province. EKSIS: Scientific Journal of Economics and Business, 14(2), 157. doi:10.33087/Eksis.V14i2.408.
Anwar, A., Sriyana, J., & Shidiqie, J. S. A. (2020). The Impact of Government Spending Spillovers on Regional Economic Growth. Montenegrin Journal of Economics, 16(2), 59–76. doi:10.14254/1800-5845/2020.16-2.5.
Apriliansah, L., & Suyatno. (2024). Analysis of the Effect of Investment on Economic Growth. Journal of Indonesian Intellect and Cendikiawan, 18(2), 157–166.
Arfiyansyah, S. (2018). Analysis of the Influence of Government Expenditures on the Human Development Index through Gross Regional Domestic Income in Indonesia. Indonesian Treasury Review Journal of State Finance and Public Policy, 3(4), 270–283. doi:10.33105/Itrev.V3i4.77.
Arfiyansyah, S., & Khusaini, M. (2020). Analysis of the Influence of Government Expenditures on the Human Development Index through Gross Regional Domestic Income in Indonesia, 20, 1–23.
Arikunto, S. (2019). Research Procedures. Jakarta: Rineka Cipta.
Asiah, S., & Purwanda, E. (2021). Analysis of Economic Growth Factors in Disadvantaged Villages in Cibitung District, Pandeglang Regency, Banten Province. Proceedings of FRIMA (Management and Accounting Scientific Research Festival), 6681(4), 369–375. doi:10.55916/Frima.V0i4.392.
Asrudi, et al. (2020). Government Expenditure and Investment on Economic Growth in Merauke Regency. IOP Conference Series: Earth and Environmental Science, 473(1). doi:10.1088/1755-1315/473/1/012029.
Aurelya, T., Nurhayati, N., & Purba, S. F. (2022). The Influence of Health Sector Conditions on Economic Growth in Indonesia. STEI Economic Journal, 31(02), 83–92. doi:10.36406/Jemi.V31i02.752.
Azfirmawarman, D., Magriasti, L., & Yulhendri. (2023). Human Development Index in Indonesia (Study of Changes in Calculation Methodology). Journal of Education and Counseling, 5(5), 117–125.
Bayu, I. B. A., & Darsana, I. B. (2020). The Influence of Education Level, MSME Investment on Labor Absorption and Economic Growth Regency/City in Bali Province. E-Journal of Economics and Business at Udayana University, 1, 57. doi:10.24843/Eeb.2020.V09.I01.P04.
Bednarska-Olejniczak, D., Olejniczak, J., & Svobodová, L. (2020). How a Participatory Budget Can Support Sustainable Rural Development: Lessons From Poland. MDPI, 12(2620), 1–29. doi:10.3390/Su12072620.
Brilyawan, K., & Santosa, P. B. (2021). The Influence of Social and Economic Infrastructure on Indonesia's Economic Growth 2015-2019. Diponegoro Journal of Economics, 10(1), 1–10.
Cahyani, A. R., Aida, N., & Yuliawan, D. (2024). The Influence of Government Expenditures in the Health Sector, Food Expenditures Per Capita, and Dependency Ratio on the Human Development Index in the Districts of Lampung Province. Journal of Ecobistek, 13(1), 13–19. doi:10.35134/Ekobistek.V13i1.770.
Carolina, M. (2022). The Effect of Government Expenditures in the Fields of Subsidies, Education, and Health on Poverty. Budget Journal: Issues and Problems of State Finance, 7(1), 165–180. doi:10.22212/Jbudget.V7i1.125.
Cristina, M. (2020). Community Empowerment Program to Increase Community Income in Sitimulyo Village, Piyungan District, Yogyakarta. Muhammadiyah University Press (MUP) Humanities Research Journal, 21(2), 128–134. doi:10.23917/Humanitas.V21i2.9222.
Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25 Program. Semarang: Diponegoro University Publishing Agency.
Lasaiba, S. (2023). Strategic Plan for Reducing Regional Disparities in Indonesia 2020-2024. Journal of Regional Development Studies, 5(2), 45–60.
Sugiyono. (2019). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alfabeta.
Sugiyono. (2019a). Understanding Research Variables. Bandung: Alfabeta.
Apriliansah, L., & Suyatno. (2024). Analysis of the Effect of Investment on Economic Growth. Journal of Indonesian Intellect and Cendikiawan, 18(2), 157–166.
Arfiyansyah, S. (2018). Analysis of the Influence of Government Expenditures on the Human Development Index through Gross Regional Domestic Income in Indonesia. Indonesian Treasury Review Journal of State Finance and Public Policy, 3(4), 270–283. doi:10.33105/Itrev.V3i4.77.
Angraini, D., Fathiyah, F., & Masnun, M. (2023). The Influence of Government Expenditures in the Economic Sector and Public Services on Economic Growth in Jambi Province. EKSIS: Scientific Journal of Economics and Business, 14(2), 157. doi:10.33087/Eksis.V14i2.408.
Arikunto, S. (2019). Research Procedures. Jakarta: Rineka Cipta.
