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Our study aims to investigate the effect of government expenditure on the poverty rate and detect the moderating role of the unemployment rate in the functional relationship between the two variables. Using a panel data set of 24 provinces in Indonesia during 2005-2018, we use the dynamic model of the Generalized Methods of Moment to estimate the functional relationships. Our findings discovered that government expenditure on goods, services, and capital significantly reduces poverty. Conversely, grant and social aid expenditures have a positive and significant effect. The unemployment rate substantially increases the poverty rate and moderates the impact of the three types of public spending on the poverty rate. The higher the unemployment rate, the smaller the poverty reduction effect of government expenditure. These findings imply that the government budgetary allocation for a particular spending component should consider the unemployment rate as the primary consideration. It is due to the effectiveness of each expenditure group in reducing poverty differing at the various levels of the unemployment rate. [ABSTRACT FROM AUTHOR]

Tax is one of the main sources of income for the state. Funds for Indonesian Citizens (WNI) invested abroad are quite large. Through the tax amnesty policy, it is hoped that these funds can return to their homeland (repatriation funds). In 2021, Indonesia's economic growth will contract for two consecutive quarters and cause a recession. This causes a state budget deficit, thus encouraging the government to formulate appropriate fiscal policies, one of which is the proposed tax amnesty policy (Tax Amnesty) volume 2. Through the tax amnesty policy, it is hoped that these funds can return to their homeland (repatriation funds). This study aims to see how the influence before and after the tax amnesty policy is implemented. There is a novelty carried out in this study, namely the analysis used is linear regression by adding a dummy variable. The results of this study indicate that government spending, tax amnesty, tax revenue, and GDP have a positive and significant effect on economic growth. [ABSTRACT FROM AUTHOR]

Our research study aims to analyze the effect of government expenditure on goods and services and capital toward regional economic growth in Indonesia. We position local tax effort as a moderating variable between economic growth and government expenditures. Using a panel data set of 24 provinces in Indonesia from 2006 to 2015, a dynamic model of GMM was applied to estimate the effect of public expenditure on growth. The research study provides empirical evidence that the two kinds of public spending positively and significantly affect economic growth. Conversely, local tax efforts negatively affect economic growth. Besides, local tax efforts also reduce the positive impact of capital expenditure on economic growth. In other words, local tax efforts negatively moderate the influence of government expenditure on the output growth of the regional economy. [ABSTRACT FROM AUTHOR]

The empirical relationship between public expenditure and economic growth can be analysed from different viewpoints. This study focuses on the empirical testing of the validity of Wagner's law for the Indonesian economy. The high economic growth in the sample period of 1980–2014 makes the law likely to be applicable to Indonesia. Causality and cointegration techniques are used. A key finding in our vector autoregression analysis is unidirectional causality running from GDP and price to government expenditure, supporting Wagner's law. In the case of price and government expenditure, this study also finds evidence of a long-run cointegrating relationship, which appears stable and supports unidirectional causality. The vast majority of the deviations from the equilibrium relationship between government expenditure and price are found to be transitory shocks to government expenditure. Most deviations also appear significantly countercyclical to economic activity, suggesting that government expenditure does play a role in economic stabilisation. [ABSTRACT FROM AUTHOR]

Investment is a critical macroeconomic variable for economic growth and development in any country. As a developing country with the fourth largest population in the world, Indonesia is also dependent on investment coming in from both home and abroad. A good investment climate is one of the solutions in overcoming economic problems so that foreign investors can invest in Indonesia. Obviously, various factors influence investors' willingness to invest in Indonesia. The purpose of this study is to examine the impact of government spending, corruption, economic growth and wages on foreign direct investment in Indonesia. The study uses Ordinary Least Square (OLS) multiple linear regression analysis for the research period 2000-2020. The results show that the variables of government spending, corruption and economic growth have positive and significant impact on foreign direct investment, while the variable of salary has negative and significant impact on foreign direct investment. The Indonesian government needs to reduce the level of corruption and wage level to attract investors. [ABSTRACT FROM AUTHOR]

The purpose of this study was to determine how the relationship between government spending, investment and Islamic bank financing on economic growth. The data in this study are secondary data obtained from BPS, KEMENKEU and BKPM. This research uses quantitative research with Partial Least Square analysis model with the help of WarpPls 7.0 application. Partial Least Square is a statistical data analysis methodology that is at the intersection between regression models, structural equation models, and multiple table analysis methods. With the results of government spending has a positive and insignificant effect of 0.18 on economic growth. Investment has a positive and insignificant effect of 0.05 on Economic Growth. And Islamic bank financing has a positive and significant impact on economic growth of 0.76. [ABSTRACT FROM AUTHOR]

While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions. [ABSTRACT FROM AUTHOR]

Objective -- Inequality of regional income, government expenditure and government revenue can show the performance of these variables in improving the economic and non-economic conditions of each region. Previous literature discusses, in part, the inequality among these three variables. This research fills the gap left by previous research by analyzing the inequality of the three variables and analysing the relationship between them in driving the provincial economy in Kalimantan. The first objective of this study is to analyze the reduction of regional income inequality, government revenue and government expenditure. The second objective is to analyze the relationship among macro variables. Methodology/Technique -- Using data from 4 provinces in Kalimantan across a 15-year period (2002-2016), this study concludes that in the short term, only changes of government revenue have an impact on regional income and only changes of government revenue has an impact on government expenditure. Meanwhile, in the long term, changes in regional income, government revenue, and government expenditure can all have an impact on regional income. [ABSTRACT FROM AUTHOR]

This study aims to examine the effect of government expenditure and money supply on the interest rate in Indonesia. The results of the test using an autoregressive distributed lag (ARDL) bounds test approach for quarterly data for the period 2005Q4-2017Q1 revealed the existence of a long-run effect of government expenditure and money supply on the interest rate. Every 1% rise in government expenditure led to a decrease in the interest rate by 1.48%, whereas every 1% rise in money supply led to an increase in the interest rate by 1.16%. The results also revealed a short-run effect of government expenditure and money supply on the interest rate. [ABSTRACT FROM AUTHOR]

Objective - This study attempts to provide comprehensive findings on the impact of several kinds of infrastructural developments and government budgets on specific purposes, as well as agricultural and non-agricultural productions, on poverty alleviation in Indonesia between 2002-2013. Methodology/Technique - This study uses macroeconomic data at a municipal level to provide more precise findings when comparing provincial and national level data. The study uses an adaptation of the theory of international development. Findings - This research shows that electricity and sanitation are more effective at eradicating poverty than water infrastructure. In addition, household access to infrastructure is more effective in combatting poverty than the government budget for infrastructure development. The study also performs correlation matrices, dividing the data into the western and eastern parts of Indonesia, to provide more robust findings. Agricultural production is more effective in the western part of Indonesia, yet non-agricultural production is more relevant towards poverty reduction in the eastern part of Indonesia. Novelty - This study yields some empirical results and conclusions for economic development in Indonesia, finding that the key problem lies in the effectiveness of budget arrangement within the framework of fiscal decentralization. [ABSTRACT FROM AUTHOR]

The objective of this study is to examine the effect of government expenditure on private domestic investment in Indonesia. Based on the previous studies, there is no clear justification whether government expenditure is crowding in or crowding out the private investment. Using quarterly time series data during period 1985 to 2012, the empirical results show that government expenditure (total) is crowding out private domestic investment in both short term and long term. Specifically, government expenditure for public service is crowding out the private investment in both short term and long term. Unlike public services, the economic expenditure is crowding in the private investment in the long term. Moreover, health expenditure is crowding out the private investment in the short term while education expenditure is crowding out in the short term and crowding in in the long term. [ABSTRACT FROM AUTHOR]

This note examines the likely impact of increased government expenditure on education in Indonesia resulting from new policy initiatives since the year 2000. These initiatives were consolidated in 2003 following the enactment of a new 'Law on National Education System'. The effectiveness of this policy is questioned by comparing the expenditure and enrolment rates between Indonesia and other High Performing Asian Economies (HPAEs) - Singapore, Hong Kong, South Korea, Thailand and Malaysia from 2000 to 2007. Privatisation of educational institutions, not greater government involvement, has been the norm across most of the other HPAEs during the 2000s. Privatisation leads to improvements in the quality and cost of education. Enrolment rates indicate that the quality of education has not improved in Indonesia as compared to other HPAEs. Improvements in quality will become a particularly important issue for Indonesia as it continues to cope with the challenges brought about by China and India's unprecedented growth as labour-intensive manufacturing powerhouses. [ABSTRACT FROM AUTHOR]