ANALISIS DAMPAK PENGELUARAN PEMERINTAH DI BIDANG PENDIDIKAN TERHADAP PDB PER KAPITA: SPENDING MORE OR SPENDING BETTER
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Sep 30, 2021
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Abstract
Government spending is the first way to create quality human resources through budget allocation commitments in the education sector. In turn, a labor market filled with quality human resources will encourage welfare and productivity and it will impact the national economy. This study aims to analyze the relationship of government spending in education to the aggregate welfare proxied using GDP per capita. This study used time-series data 1980-2018 from World Development Indicators (WDI) World Bank. Vector Error Correction Model (VECM) is employed to analyze the government spending in the education sector to the welfare. Empirically, the findings of this study reveal that government spending in the education sector affects aggregate welfare with a little magnitude. The issue of equity and disparity in fiscal capacity among regions is the main matter. On the other side, Geographic, social, cultural, and population conditions are challenges that must be solved by the government.
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Rifa’i, A., & Moddilani, G. (2021). ANALISIS DAMPAK PENGELUARAN PEMERINTAH DI BIDANG PENDIDIKAN TERHADAP PDB PER KAPITA: SPENDING MORE OR SPENDING BETTER. Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara Dan Kebijakan Publik, 6(3), 211-226. https://doi.org/https://doi.org/10.33105/itrev.v6i3.370
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References
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Appiah, E. N. (2017). The Effect of Education Expenditure on Per Capita GDP in Developing Countries. International Journal of Economics and Finance, 9(10), 136.
Batubara, D.M.H., Saskara, I.A.N., 2015. Analisis Hubungan Ekspor , Impor , PDB , Causality And Co-Integration Analysis Between Exports , Imports ,. J. Ekon. Kuantitatif Terap. 8, 46–55.
Castro-Leal, F., Dayton, J., Demery, L., & Mehra, K. (2000). Public spending on health care in Africa: Do the poor benefit? Bulletin of the World Health Organization, 78(1), 66–74.
Cobb, C. W., & Douglas, P. H. (1928). A Theory of Production Competence. The American Economic Review, 18(1), 139–165.
Dao, M. Q. (2012). Government expenditure and growth in developing countries. Progress in Development Studies, 12(1), 77–82.
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74(366), 427.
Duflo, E. (2000). Schooing and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. National Bureau of Economic Research, (7860), 62.
Ekinci, E., Karaçor, Z., Konya, S., & Güvenek, B. (2017). Relationship With Education Expenditure and Economic Growth in Oecd Countries: a Panel Data Analysis. DIEM : Dubrovnik International Economic Meeting, 3(1), 255–269.
Engle, R. F., & Granger, C. W. J. (1987). Co-Integration and Error Correction : Representation , Estimation,. Econometrica, 55(2), 251–276.
Frank, N. (2018). Making the Grade: The Contribution of Education Expenditure to Economic Growth. Undergraduate Economic Review, 14(1).
Granger, C. W. J. (1981). Some properties of time series data and their use in econometric model specification. Journal of Econometrics, 16(1), 121–130.
Guisan, M.-C. (2006). Direct and Indirect Effects of Human Capital on World. Applied Econometrics and International Development, 6(1), 17–34.
Hall, D. (2014). Why We Need Public Spending. In European Federation of Public Service Unions.
Ifa, A., & Guetat, I. (2018). Does public expenditure on education promote Tunisian and Moroccan GDP per capita? ARDL approach. The Journal of Finance and Data Science, 4(4), 234–246.
Jasmina, T., 2017. Public Spending and Learning Outcomes of Basic Education at the District Level in Indonesia. Econ. Financ. Indones. 62, 180.
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254.
Johansen, S. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59(November 1991), 1551–1580.
Kouton, J. (2018). Education expenditure and economic growth : Some empirical evidence from Côte d ’ Ivoire. MPRA Paper, (88350).
Liu, L. C., Hsu, C. E., & Younis, M. Z. (2008). The association between government expenditure and economic growth: granger causality test of us data, 1947-2002. Journal of Public Budgeting, Accounting & Financial Management, 20(4), 439–452.
Maitra, B., & Mukhopadhyay, C. K. (2012). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Asia-Pacific Development Journal, 19(2), 19–48.
Mas Jas, W., Gek Sintha, Widodo, T., 2012. Distribution of government spending on education in Indonesia. MPRA Paper.
Nose, M. (2015). Estimation of drivers of public education expenditure: Baumol’s effect revisited. In IMF Working Paper.
OECD & ADB. (2015). Education in Indonesia: Rising to the Challenge. In OECD (Vol. 20).
OECD. (2006). The Returns to Education: Links Between Education, Economic Growth, and Social Outcomes. In Education at a Glance.
Ozawa, M., & Lee, Y. S. (2011). Generational inequity in social spending: The United States in comparative perspective. International Social Work, 56(2), 162–179.
Saraswati, E. (2013). Public Spending Education and Inequality: A Case Study in Indonesia. International Journal of Social Science and Humanity, 2(5), 427–431.
Shafuda, C. P. P., & De, U. K. (2020). Government expenditure on human capital and growth in Namibia: a time series analysis. Journal of Economic Structures, 9(1).
Sims, C. A. (1980). Macroeconomics and Reality. The Econometric Society, 48(1), 1–48.
Taruno, H. T. (2019). Investigating the public spending and economical growth on the poverty reduction in Indonesia. The Indonesian Journal of Planning and Development, 18(3).
World Bank, 2013. Spending more or spending better: Improving education financing in Indonesia, The World Bank Report.
Amaghionyeodiwe, L. A. (2015). Government Spending on Education and Economic Growth: A Case Study of West African Countries.
Appiah, E. N. (2017). The Effect of Education Expenditure on Per Capita GDP in Developing Countries. International Journal of Economics and Finance, 9(10), 136.
Batubara, D.M.H., Saskara, I.A.N., 2015. Analisis Hubungan Ekspor , Impor , PDB , Causality And Co-Integration Analysis Between Exports , Imports ,. J. Ekon. Kuantitatif Terap. 8, 46–55.
Castro-Leal, F., Dayton, J., Demery, L., & Mehra, K. (2000). Public spending on health care in Africa: Do the poor benefit? Bulletin of the World Health Organization, 78(1), 66–74.
Cobb, C. W., & Douglas, P. H. (1928). A Theory of Production Competence. The American Economic Review, 18(1), 139–165.
Dao, M. Q. (2012). Government expenditure and growth in developing countries. Progress in Development Studies, 12(1), 77–82.
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74(366), 427.
Duflo, E. (2000). Schooing and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. National Bureau of Economic Research, (7860), 62.
Ekinci, E., Karaçor, Z., Konya, S., & Güvenek, B. (2017). Relationship With Education Expenditure and Economic Growth in Oecd Countries: a Panel Data Analysis. DIEM : Dubrovnik International Economic Meeting, 3(1), 255–269.
Engle, R. F., & Granger, C. W. J. (1987). Co-Integration and Error Correction : Representation , Estimation,. Econometrica, 55(2), 251–276.
Frank, N. (2018). Making the Grade: The Contribution of Education Expenditure to Economic Growth. Undergraduate Economic Review, 14(1).
Granger, C. W. J. (1981). Some properties of time series data and their use in econometric model specification. Journal of Econometrics, 16(1), 121–130.
Guisan, M.-C. (2006). Direct and Indirect Effects of Human Capital on World. Applied Econometrics and International Development, 6(1), 17–34.
Hall, D. (2014). Why We Need Public Spending. In European Federation of Public Service Unions.
Ifa, A., & Guetat, I. (2018). Does public expenditure on education promote Tunisian and Moroccan GDP per capita? ARDL approach. The Journal of Finance and Data Science, 4(4), 234–246.
Jasmina, T., 2017. Public Spending and Learning Outcomes of Basic Education at the District Level in Indonesia. Econ. Financ. Indones. 62, 180.
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254.
Johansen, S. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59(November 1991), 1551–1580.
Kouton, J. (2018). Education expenditure and economic growth : Some empirical evidence from Côte d ’ Ivoire. MPRA Paper, (88350).
Liu, L. C., Hsu, C. E., & Younis, M. Z. (2008). The association between government expenditure and economic growth: granger causality test of us data, 1947-2002. Journal of Public Budgeting, Accounting & Financial Management, 20(4), 439–452.
Maitra, B., & Mukhopadhyay, C. K. (2012). Public spending on education, health care and economic growth in selected countries of Asia and the Pacific. Asia-Pacific Development Journal, 19(2), 19–48.
Mas Jas, W., Gek Sintha, Widodo, T., 2012. Distribution of government spending on education in Indonesia. MPRA Paper.
Nose, M. (2015). Estimation of drivers of public education expenditure: Baumol’s effect revisited. In IMF Working Paper.
OECD & ADB. (2015). Education in Indonesia: Rising to the Challenge. In OECD (Vol. 20).
OECD. (2006). The Returns to Education: Links Between Education, Economic Growth, and Social Outcomes. In Education at a Glance.
Ozawa, M., & Lee, Y. S. (2011). Generational inequity in social spending: The United States in comparative perspective. International Social Work, 56(2), 162–179.
Saraswati, E. (2013). Public Spending Education and Inequality: A Case Study in Indonesia. International Journal of Social Science and Humanity, 2(5), 427–431.
Shafuda, C. P. P., & De, U. K. (2020). Government expenditure on human capital and growth in Namibia: a time series analysis. Journal of Economic Structures, 9(1).
Sims, C. A. (1980). Macroeconomics and Reality. The Econometric Society, 48(1), 1–48.
Taruno, H. T. (2019). Investigating the public spending and economical growth on the poverty reduction in Indonesia. The Indonesian Journal of Planning and Development, 18(3).
World Bank, 2013. Spending more or spending better: Improving education financing in Indonesia, The World Bank Report.