Specific Allocation Funds, Economic Growth, and Unemployment: A Case Study in Banten Province, Indonesia

Sukanto, Sukanto and Juanda, Bambang and Fauzi, Akhmad and Mulatsih, Sri (2018) Specific Allocation Funds, Economic Growth, and Unemployment: A Case Study in Banten Province, Indonesia. International Journal of Scientific and Research Publications, 8 (9). pp. 386-390. ISSN 2250-3153

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Abstract

Specific allocation funds to the regions are still needed due to inequality of regional financial capacity. Areas with low financial capability are identical to those underdeveloped regions, which have relatively low levels of economic growth and high level of unemployment. This study analyzes the impact of specific allocation funds on economic growth and unemployment through the regional expenditure mechanism, using panel data from 2010-2015, while the simultaneous equation model is estimated using the Two Stage Least Square (2SLS) method. The results of the study indicate that the Specific Allocation Fund does not affect capital expenditures in the regency areas, but does so in the cities. Specific Allocation Funds have a significant influence on economic growth and unemployment through capital expenditure transmission. Going forward, the government needs to increase.

Item Type: Article
Subjects: H Social Sciences > HC Economic History and Conditions > HC79 Special topics Including air pollution, automation, consumer demand, famines, flow of funds, etc.
Divisions: 01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User: Dr. Sukanto Sukanto
Date Deposited: 04 Mar 2020 08:21
Last Modified: 04 Mar 2020 08:21
URI: http://repository.unsri.ac.id/id/eprint/27861

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