IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v82y2022ics1049007822000719.html
   My bibliography  Save this article

How can quality regional spending reduce poverty and improve human development index?

Author

Listed:
  • Masduki, Uki
  • Rindayati, Wiwiek
  • Mulatsih, Sri

Abstract

There is only a small amount of literature that discusses government spending and development performance, especially poverty and the human development index (HDI). Most of them discuss through income. Although some discuss government spending, few discuss their quality. This paper attempts to examine and discuss the quality of government spending and then to link its effects to poverty and HDI rates for underdeveloped areas in Indonesia in Java. The method used in this study is to use the Partial Least Squares Structural Equation Model (PLS-SEM) with the help of SmartPLS software. The results of this study indicate that the quality of government spending is supported by the constructs of PRIORITY, ALLOCATION, TIME, ACCOUNTABILITY, and EFFECTIVENESS. This means that government spending can be said to be of quality when viewed from the five constructs. The results of this study also concluded that quality government spending can reduce poverty levels and the human development index (HDI).

Suggested Citation

  • Masduki, Uki & Rindayati, Wiwiek & Mulatsih, Sri, 2022. "How can quality regional spending reduce poverty and improve human development index?," Journal of Asian Economics, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:asieco:v:82:y:2022:i:c:s1049007822000719
    DOI: 10.1016/j.asieco.2022.101515
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007822000719
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.asieco.2022.101515?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Manggar Wulan Kusuma & Rudy Badrudin, 2016. "Fiscal decentralization effect on economic growth in Bali," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 136-147.
    2. Borge, Lars-Erik & Brueckner, Jan K. & Rattsø, Jorn, 2014. "Partial fiscal decentralization and demand responsiveness of the local public sector: Theory and evidence from Norway," Journal of Urban Economics, Elsevier, vol. 80(C), pages 153-163.
    3. Mohammad Imdadul Haque & Md Riyazuddin Khan, 2019. "Role of Oil Production and Government Expenditure in Improving Human Development Index: Evidence from Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 251-256.
    4. Andreas P. Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2015. "Fiscal decentralization and regional disparities: The importance of good governance," Papers in Regional Science, Wiley Blackwell, vol. 94(1), pages 89-107, March.
    5. Edward Anderson & Maria Ana Jalles D'Orey & Maren Duvendack & Lucio Esposito, 2017. "Does Government Spending Affect Income Inequality? A Meta-Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 31(4), pages 961-987, September.
    6. Cordelia Onyinyechi Omodero, 2019. "Government Sectoral Expenditure and Poverty Alleviation in Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(1), pages 80-90, June.
    7. Shujie Yao, 1999. "Economic growth, income inequality and poverty in china under economic reforms," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 104-130.
    8. Manggar Wulan Kusuma & Rudy Badrudin, 2016. "Fiscal decentralization effect on economic growth in Bali," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 136-147, April.
    9. Tuan T. Chu & Jens Hölscher & Dermot McCarthy, 2020. "The impact of productive and non-productive government expenditure on economic growth: an empirical analysis in high-income versus low- to middle-income economies," Empirical Economics, Springer, vol. 58(5), pages 2403-2430, May.
    10. Ramírez, Juan Mauricio & Díaz, Yadira & Bedoya, Juan Guillermo, 2017. "Property Tax Revenues and Multidimensional Poverty Reduction in Colombia: A Spatial Approach," World Development, Elsevier, vol. 94(C), pages 406-421.
    11. Stephen D. Younger & Eric Osei-Assibey & Felix Oppong, 2017. "Fiscal Incidence in Ghana," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 47-66, November.
    12. Ritwik Sasmal & Joydeb Sasmal, 2016. "Public expenditure, economic growth and poverty alleviation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(6), pages 604-618, June.
    13. Nicholas Odhiambo, 2015. "Government Expenditure and Economic Growth in South Africa: an Empirical Investigation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 393-406, September.
    14. Landau, Daniel, 1986. "Government and Economic Growth in the Less Developed Countries: An Empirical Study for 1960-1980," Economic Development and Cultural Change, University of Chicago Press, vol. 35(1), pages 35-75, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suwan Lu & Guobin Fang & Mingtao Zhao, 2023. "Towards Inclusive Growth: Perspective of Regional Spatial Correlation Network in China," Sustainability, MDPI, vol. 15(7), pages 1-19, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hao, Yu & Liu, Jiahui & Lu, Zhi-Nan & Shi, Ruijie & Wu, Haitao, 2021. "Impact of income inequality and fiscal decentralization on public health: Evidence from China," Economic Modelling, Elsevier, vol. 94(C), pages 934-944.
    2. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Maria Kovacova, 2023. "Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries," Mathematics, MDPI, vol. 11(2), pages 1-30, January.
    3. Khasandy, Elleriz Aisha & Badrudin, Rudy, 2019. "The Influence of Zakat on Economic Growth and Welfare Society in Indonesia," MPRA Paper 91574, University Library of Munich, Germany.
    4. Omoshoro-Jones, Oyeyinka Sunday, 2016. "A Cointegration and Causality Test on Government Expenditure –Economic Growth Nexus: Empirical Evidence from a South African Province," MPRA Paper 102085, University Library of Munich, Germany, revised 17 Oct 2017.
    5. Eduardo A. Haddad & Luis A. Galvis & Inácio F. Araújo-Junior & Vinicius A.Vale, 2018. "Impact Assessment of Scenarios of Interregional Transfers in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 16767, Banco de la República, Economía Regional.
    6. Lars Håkonsen & Trond Erik Lunder, 2015. "Matching versus General Grants: Local Government Response to Child-Care Subsidies," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 71(3), pages 299-327, September.
    7. Fulong Wu, 2007. "The Poverty of Transition: From Industrial District to Poor Neighbourhood in the City of Nanjing, China," Urban Studies, Urban Studies Journal Limited, vol. 44(13), pages 2673-2694, December.
    8. Mlungisi Mokoena & Adrino Mazenda, 2023. "The role of fiscal policy on poverty reduction in South Africa," Future Business Journal, Springer, vol. 9(1), pages 1-9, December.
    9. Onafowora, Olugbenga A. & Owoye, Oluwole, 1998. "Can Trade Liberalization Stimulate Economic Growth in Africa?," World Development, Elsevier, vol. 26(3), pages 497-506, March.
    10. Mohammad Imdadul Haque, 2019. "Growth Accounting for Saudi Arabia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(6), pages 691-701, June.
    11. Kailei Wei & Shujie Yao & Aying Liu, 2007. "Foreign direct investment and regional inequality in China," Discussion Papers 07/32, University of Nottingham, GEP.
    12. Montrone, Lorenzo & Steckel, Jan Christoph & Kalkuhl, Matthias, 2022. "The type of power capacity matters for economic development – Evidence from a global panel," Resource and Energy Economics, Elsevier, vol. 69(C).
    13. Alali, Walid Y., 2009. "Economic Performance and Institutions: Measuring Technical Efficiency Using SPF Approach," MPRA Paper 114336, University Library of Munich, Germany, revised Aug 2009.
    14. WANG, Zuxiang & SMYTH, Russell & NG, Yew-Kwang, 2009. "A new ordered family of Lorenz curves with an application to measuring income inequality and poverty in rural China," China Economic Review, Elsevier, vol. 20(2), pages 218-235, June.
    15. Rafiou Raphaël Bétila, 2021. "The impact of Ease of Doing Business on economic growth: a dynamic panel analysis for African countries," SN Business & Economics, Springer, vol. 1(10), pages 1-34, October.
    16. Chenting Su & Ronald K. Mitchell & M. Joseph Sirgy, 2007. "Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi," Journal of Business Ethics, Springer, vol. 71(3), pages 301-319, March.
    17. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2017. "Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 15746, Banco de la República, Economía Regional.
    18. Nicholas M. Odhiambo, 2021. "Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 31(1), pages 77-93, April.
    19. E. N. Timushev, 2021. "Intraregional (Local) Fiscal Decentralization and Investment in Fixed Assets in Russia," Studies on Russian Economic Development, Springer, vol. 32(1), pages 87-97, January.
    20. Astrid Marie Jorde Sandsør & Torberg Falch & Bjarne Strøm, 2022. "Long‐run Effects of Local Government Mergers on Educational Attainment and Income," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(1), pages 185-213, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:82:y:2022:i:c:s1049007822000719. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.