The Role of Government Expenditure on Per Capita Income Convergence in East Java Province

Autor: Erwin Hardianto, Achmad Solihin
Jazyk: English<br />Indonesian
Rok vydání: 2024
Předmět:
Zdroj: JIET (Jurnal Ilmu Ekonomi Terapan), Vol 9, Iss 2, Pp 248-256 (2024)
Druh dokumentu: article
ISSN: 2541-1470
2528-1879
DOI: 10.20473/jiet.v9i2.59190
Popis: This research aims to test and analyze the absolute and conditional convergence of per capita income from 38 districts/cities in East Java with the variables PAD, BOS and BOK during the period 2020 - 2022. According to the Chow, Hausmann test and Lagrange Multiplier, the panel data convergence model estimates using the fixed effect model method. Results show that in the districts/cities and observation period, divergent conditions occurred. Also, conditional variables did not have a significant influence on the growth of per capita income. This condition can occur because capital and technology are distributed unevenly between districts/cities. The implication of this research is to improve the allocation and distribution of the government budget, especially those related to School Operational Assistance (BOS) and Health Operational Assistance (BOK).
Databáze: Directory of Open Access Journals