Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province

Poverty is still one of the forefront issues in developing countries. It could hamper the achievement of sustainable development goals, thereby triggering a recurring call on the government's role in mitigating poverty. This paper contributed to the debate on the role of sectoral government spe...

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Main Authors: Mega Novitasari, Doddy Aditya Iskandar
Format: Article
Language:Indonesian
Published: Pusat Pembinaan, Pendidikan, dan Pelatihan Perencana Bappenas 2022-12-01
Series:The Journal of Indonesia Sustainable Development Planning
Subjects:
Online Access:http://journal.pusbindiklatren.bappenas.go.id/lib/jisdep/article/view/361
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author Mega Novitasari
Doddy Aditya Iskandar
author_facet Mega Novitasari
Doddy Aditya Iskandar
author_sort Mega Novitasari
collection DOAJ
description Poverty is still one of the forefront issues in developing countries. It could hamper the achievement of sustainable development goals, thereby triggering a recurring call on the government's role in mitigating poverty. This paper contributed to the debate on the role of sectoral government spending under the fiscal decentralization policy to combat poverty. Using a case study in South Kalimantan Province, we employed a spatial panel data analysis covering 13 districts from 2010-2020. This study investigated the presence of spatial dependency on poverty and the spatial spillover impact of government expenditure— education, health, housing, public facilities, and social protection—on poverty. The research found the existence of spatial autocorrelation on poverty and the significant high-cluster poverty in the agriculture- based region. The direct estimation from the Spatial Durbin Model uncovered that government expenditure on education, health, and social protection significantly alleviated poverty, while housing and public facilities expenditure remained insignificant in reducing the poverty rate. Besides, education spending also has a significant indirect effect on poverty, indicating the spatial spillover impact of education spending by the neighbors on poverty in a region.
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spelling doaj.art-b4a66700a98d4fa091b88fec20b9158c2023-12-11T07:28:39ZindPusat Pembinaan, Pendidikan, dan Pelatihan Perencana BappenasThe Journal of Indonesia Sustainable Development Planning2721-83092722-08422022-12-013320722110.46456/jisdep.v3i3.361361Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan ProvinceMega Novitasari0Doddy Aditya Iskandar1National Graduate Institute of Policy Studies (GRIPS), Tokyo, JapanGadjah Mada University, Yogyakarta, IndonesiaPoverty is still one of the forefront issues in developing countries. It could hamper the achievement of sustainable development goals, thereby triggering a recurring call on the government's role in mitigating poverty. This paper contributed to the debate on the role of sectoral government spending under the fiscal decentralization policy to combat poverty. Using a case study in South Kalimantan Province, we employed a spatial panel data analysis covering 13 districts from 2010-2020. This study investigated the presence of spatial dependency on poverty and the spatial spillover impact of government expenditure— education, health, housing, public facilities, and social protection—on poverty. The research found the existence of spatial autocorrelation on poverty and the significant high-cluster poverty in the agriculture- based region. The direct estimation from the Spatial Durbin Model uncovered that government expenditure on education, health, and social protection significantly alleviated poverty, while housing and public facilities expenditure remained insignificant in reducing the poverty rate. Besides, education spending also has a significant indirect effect on poverty, indicating the spatial spillover impact of education spending by the neighbors on poverty in a region.http://journal.pusbindiklatren.bappenas.go.id/lib/jisdep/article/view/361povertysectoral government expenditurespatial dependencyspatial spillover impactspatial durbin model (sdm)
spellingShingle Mega Novitasari
Doddy Aditya Iskandar
Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
The Journal of Indonesia Sustainable Development Planning
poverty
sectoral government expenditure
spatial dependency
spatial spillover impact
spatial durbin model (sdm)
title Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
title_full Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
title_fullStr Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
title_full_unstemmed Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
title_short Spatial Spillover Impact of Sectoral Government Expenditure on Poverty Alleviation in South Kalimantan Province
title_sort spatial spillover impact of sectoral government expenditure on poverty alleviation in south kalimantan province
topic poverty
sectoral government expenditure
spatial dependency
spatial spillover impact
spatial durbin model (sdm)
url http://journal.pusbindiklatren.bappenas.go.id/lib/jisdep/article/view/361
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AT doddyadityaiskandar spatialspilloverimpactofsectoralgovernmentexpenditureonpovertyalleviationinsouthkalimantanprovince