The Relationship between the Government Size and Economic Growth in South Sumatra

In general, many factors, including government spending, influence economic growth. In many theoretical and empirical studies, government spending is seen from the ratio between government spending and Gross Domestic Product (GDP) or government size. This research aims to examine the influence of go...

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Main Authors: Khairunisah Rahmatullah, Azwardi, Sukanto
Format: Article
Language:deu
Published: Institute of Accounting and Finance 2022-09-01
Series:Облік і фінанси
Subjects:
Online Access:http://www.afj.org.ua/pdf/934-zv-yazok-mizh-rozmirom-derzhavnih-vitrat-ta-ekonomichnim-zrostannyam-v-provincii-pivdenna-sumatra.pdf
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author Khairunisah Rahmatullah
Azwardi
Sukanto
author_facet Khairunisah Rahmatullah
Azwardi
Sukanto
author_sort Khairunisah Rahmatullah
collection DOAJ
description In general, many factors, including government spending, influence economic growth. In many theoretical and empirical studies, government spending is seen from the ratio between government spending and Gross Domestic Product (GDP) or government size. This research aims to examine the influence of government size on economic growth in districts/cities of South Sumatra Province. The government size to be analyzed is the amount of government spending on public services, housing and public facilities, education, and health. The data used in this study is secondary data for the 2010-2020 and covers 15 regencies/cities. The data was obtained from the Central Statistics Agency and the Regional Financial and Asset Management Agency. The analytical technique used in this research is descriptive analysis technique and quantitative analysis. Klassen Typology Approach was used to identify the regencies/cities with fast growth and the relatively lagging regencies/cities of South Sumatra Province. The study results show that government spending on public services and health has a positive and significant effect on economic growth. Meanwhile, the government spending on housing and public facilities has a positive and insignificant effect. In contrast, the government spending on education has a negative and significant impact on economic growth. This study recommends local governments increase the allocation of regional expenditure to sectors that lead to economic growth, especially in newly created regions.
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spelling doaj.art-a5c692127e72420992f29e850d2934362023-02-06T17:08:50ZdeuInstitute of Accounting and FinanceОблік і фінанси2307-98782518-11812022-09-013(97)11011810.33146/2307-9878-2022-3(97)-110-118The Relationship between the Government Size and Economic Growth in South SumatraKhairunisah Rahmatullah0https://orcid.org/0000-0002-3226-1091Azwardi1https://orcid.org/0000-0002-5631-9331Sukanto2https://orcid.org/0000-0002-1946-3270Sriwijaya University, Palembang, IndonesiaSriwijaya University, Palembang, IndonesiaSriwijaya University, Palembang, IndonesiaIn general, many factors, including government spending, influence economic growth. In many theoretical and empirical studies, government spending is seen from the ratio between government spending and Gross Domestic Product (GDP) or government size. This research aims to examine the influence of government size on economic growth in districts/cities of South Sumatra Province. The government size to be analyzed is the amount of government spending on public services, housing and public facilities, education, and health. The data used in this study is secondary data for the 2010-2020 and covers 15 regencies/cities. The data was obtained from the Central Statistics Agency and the Regional Financial and Asset Management Agency. The analytical technique used in this research is descriptive analysis technique and quantitative analysis. Klassen Typology Approach was used to identify the regencies/cities with fast growth and the relatively lagging regencies/cities of South Sumatra Province. The study results show that government spending on public services and health has a positive and significant effect on economic growth. Meanwhile, the government spending on housing and public facilities has a positive and insignificant effect. In contrast, the government spending on education has a negative and significant impact on economic growth. This study recommends local governments increase the allocation of regional expenditure to sectors that lead to economic growth, especially in newly created regions.http://www.afj.org.ua/pdf/934-zv-yazok-mizh-rozmirom-derzhavnih-vitrat-ta-ekonomichnim-zrostannyam-v-provincii-pivdenna-sumatra.pdfgovernment sizegovernment spendingeconomic growthklassen typologyinverted armey u curve
spellingShingle Khairunisah Rahmatullah
Azwardi
Sukanto
The Relationship between the Government Size and Economic Growth in South Sumatra
Облік і фінанси
government size
government spending
economic growth
klassen typology
inverted armey u curve
title The Relationship between the Government Size and Economic Growth in South Sumatra
title_full The Relationship between the Government Size and Economic Growth in South Sumatra
title_fullStr The Relationship between the Government Size and Economic Growth in South Sumatra
title_full_unstemmed The Relationship between the Government Size and Economic Growth in South Sumatra
title_short The Relationship between the Government Size and Economic Growth in South Sumatra
title_sort relationship between the government size and economic growth in south sumatra
topic government size
government spending
economic growth
klassen typology
inverted armey u curve
url http://www.afj.org.ua/pdf/934-zv-yazok-mizh-rozmirom-derzhavnih-vitrat-ta-ekonomichnim-zrostannyam-v-provincii-pivdenna-sumatra.pdf
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