Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia

Implementing the Regional Revenue and Expenditure Budget (APBD) policy and at the same time reducing income disparity is a tangible manifestation and success of local governments to keep poverty level low. This study focuses on the analyzing short-term and long-term effects of variables government e...

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Main Authors: Mirza Zuhri, Abd. Jamal, Putri Bintusy Syathi
Format: Article
Language:English
Published: Research Collaboration Community (RCC) 2022-05-01
Series:International Journal of Business, Economics, and Social Development
Subjects:
Online Access:https://journal.rescollacomm.com/index.php/ijbesd/article/view/278
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author Mirza Zuhri
Abd. Jamal
Putri Bintusy Syathi
author_facet Mirza Zuhri
Abd. Jamal
Putri Bintusy Syathi
author_sort Mirza Zuhri
collection DOAJ
description Implementing the Regional Revenue and Expenditure Budget (APBD) policy and at the same time reducing income disparity is a tangible manifestation and success of local governments to keep poverty level low. This study focuses on the analyzing short-term and long-term effects of variables government expenditure realization and income disparity toward poverty in Aceh Province, Indonesia during 2010-2019 period using Auto Regressive Distributed Lag (ARDL) approach. It is found that both independent variables have no significant effect on short term but have significant effect on long term. Government expenditure realization is found significant at error level 1% while income disparity is found significant at error level 5% toward poverty in long term. Also both government expenditure realization and income disparity is found to have positive effect toward poverty in long term. Based on these findings it is hoped the policy maker will able to formulate a strategic plan to reduce poverty rate in Aceh Province, Indonesia.
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spelling doaj.art-5421e16ee28d408f823eadeb4b3163312023-05-26T03:23:38ZengResearch Collaboration Community (RCC)International Journal of Business, Economics, and Social Development2722-11642722-11562022-05-0132889210.46336/ijbesd.v3i2.278192Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, IndonesiaMirza Zuhri0Abd. Jamal1Putri Bintusy Syathi2Department of Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, IndonesiaDepartment of Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, IndonesiaDepartment of Economics, Faculty of Economics and Business, Syiah Kuala University, Darussalam, Banda Aceh, IndonesiaImplementing the Regional Revenue and Expenditure Budget (APBD) policy and at the same time reducing income disparity is a tangible manifestation and success of local governments to keep poverty level low. This study focuses on the analyzing short-term and long-term effects of variables government expenditure realization and income disparity toward poverty in Aceh Province, Indonesia during 2010-2019 period using Auto Regressive Distributed Lag (ARDL) approach. It is found that both independent variables have no significant effect on short term but have significant effect on long term. Government expenditure realization is found significant at error level 1% while income disparity is found significant at error level 5% toward poverty in long term. Also both government expenditure realization and income disparity is found to have positive effect toward poverty in long term. Based on these findings it is hoped the policy maker will able to formulate a strategic plan to reduce poverty rate in Aceh Province, Indonesia.https://journal.rescollacomm.com/index.php/ijbesd/article/view/278poverty, government expenditure, income disparity, auto regressive distributed lag (ardl)
spellingShingle Mirza Zuhri
Abd. Jamal
Putri Bintusy Syathi
Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
International Journal of Business, Economics, and Social Development
poverty, government expenditure, income disparity, auto regressive distributed lag (ardl)
title Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
title_full Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
title_fullStr Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
title_full_unstemmed Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
title_short Analysis of Short and Long Term Effect on Government Expenditure Realization and Income Disparity Toward Poverty in Aceh Province, Indonesia
title_sort analysis of short and long term effect on government expenditure realization and income disparity toward poverty in aceh province indonesia
topic poverty, government expenditure, income disparity, auto regressive distributed lag (ardl)
url https://journal.rescollacomm.com/index.php/ijbesd/article/view/278
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AT abdjamal analysisofshortandlongtermeffectongovernmentexpenditurerealizationandincomedisparitytowardpovertyinacehprovinceindonesia
AT putribintusysyathi analysisofshortandlongtermeffectongovernmentexpenditurerealizationandincomedisparitytowardpovertyinacehprovinceindonesia