Do Productive Government Expenditures Affect Economic Growth? Evidence from Provincial Governments across Indonesia

Rosdiana Sijabat
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引用次数: 6

Abstract

This study is intended to examine the impacts of productive expenditures on economic growth on the 25 provinces found in Indonesia before fiscal decen- tralization (covering 1994–1997) and 33 provinces after decentralization over the period 2011-2015. The empiric approach has been implemented through a panel data approach and regression model estimated to follow the endogenous growth model of Barro (1990). The main findings of this research show that: (1) provincial governments’ productive expenditures in education promoted eco- nomic growth in the 25 pre-decentralization provinces; and (2) productive ex- penditures in the security and public order sector, health and education sector have promoted economic growth in the 33 post-decentralization provinces. From these results, it can be concluded that this study has contributed to economic literature by indicating that different types of productive government expendi- tures offer different impacts on economic growth. The policy implications which can be formulated from the results of this study are that provincial governments should promote and provide incentives for private investments in the public sec- tor because only the education sector (before fiscal decentralization) and the security and public order sector as well as the education sector (after fiscal decentralization) have a statistically significant role in promoting economic growth. This can be realized through public–private partnership, which has greatly in- creased the performance of public-sector investment around the world. Future research, using relevant control variables to estimate the effects of productive expenditures on economic growth, will provide a greater empiric contribution to the literature.
生产性政府支出影响经济增长吗?来自印度尼西亚各省政府的证据
本研究旨在考察2011-2015年期间,在财政分权之前(涵盖1994-1997年),印度尼西亚25个省和分权之后的33个省的生产性支出对经济增长的影响。经验方法通过面板数据方法和回归模型实施,估计遵循Barro(1990)的内生增长模型。本研究的主要发现表明:(1)25个权力下放前省份的省级政府教育生产性支出促进了经济增长;(2)安全和公共秩序部门、卫生和教育部门的生产性支出促进了33个权力下放后省份的经济增长。从这些结果可以得出结论,本研究对经济文献做出了贡献,表明不同类型的生产性政府支出对经济增长的影响不同。从这项研究的结果中可以得出的政策影响是,省级政府应该促进并激励私人投资公共部门,因为只有教育部门(在财政权力下放之前)、安全和公共秩序部门以及教育部门(财政权力下放之后)在统计上有在促进经济增长方面发挥重要作用。这可以通过公私合作来实现,这大大提高了世界各地公共部门投资的绩效。未来的研究,使用相关的控制变量来估计生产性支出对经济增长的影响,将为文献提供更大的实证贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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