The Impact of Local Government Shopping Structures on Poverty Rate in Sulawesi Island

Authors

Sri Nurdiani Taha
Syarwani Canon
Boby Rantow Payu

Keywords:

Structure-Shopping Government, Poverty

Synopsis

This study aims to determine the impact of the structure of local government spending on poverty levels. The data used in this research is secondary data in the form of 6 provinces in Sulawesi, for the period 2011-2020, sourced from the Central Statistics Agency and the Ministry of Finance. The method used is multiple regression analysis using panel data. The results of the analysis show that the function of economic spending has a positive and significant effect on poverty. This means that an increase in the function of economic spending will increase poverty. The function of health spending has a positive and significant effect on poverty. Where the increase in the function of health spending can increase poverty, the function of spending on order and security has a negative and
insignificant effect on poverty. This means that the increase in the function of spending on order and security cannot directly explain poverty reduction. The function of environmental spending has a positive and significant effect on poverty. This means that increasing poverty can improve the function of environmental spending. The tourism & cultural expenditure function has a negative and insignificant effect on poverty. This means that the increase in the function of tourism and cultural spending increases so that it cannot explain the decline in poverty. The function of public service expenditure has a positive and significant effect on poverty. This means that an increase in the general expenditure function can increase poverty. The function of education spending has a positive and significant effect on poverty. Where the increase in the education expenditure function can increase poverty. The social protection expenditure function has a positive and significant effect on poverty. This means that increasing the function of social protection spending can increase poverty. The function of spending on housing and public facilities has a positive and significant effect on poverty. Where the increase in spending on housing and public facilities can increase poverty.

Published

November 7, 2022