ANALYSIS OF THE EFFECT OF GOVERNMENT SPENDING TOWARD ECONOMIC GROWTH AND HUMAN DEVELOPMENT INDEX AT THE BORDER DISTRICT IN WEST KALIMANTAN
Abstract
Border districts in West Kalimantan district is directly adjacent to the East Malaysian State of Sarawak. The main problem faced in the border area is isolation, backwardness, poverty, high prices of goods and services, facilities and infrastructure as well as the limitations of public services (infrastructure, education and health facilities). Limitations in the public service becomes the main cause of the low quality of human resources. To improve the region's economic development, it takes kersediaan adequate infrastructure and resources need to be supported with increased quality. In this connection, the necessary amount of government funds to finance the development activities in the border districts. The purpose of this study is to determine the effect of government spending in infrastructure, education and health sector to economic growth and human development index in the border districts of West Kalimantan province during the 2007-2014 period.
The data used in the analysis was a joint panel data between the data time series and cross section. This study uses the correlative study of causality that the research methods used to observe the effect of the relationship between the independent variables and the dependent variable. Model estimates used in this analysis is a model of Ordinary Least Square (OLS). Data processing using software SPSS 17.0 for Windows series.
The results showed that government spending in infrastructure and education has positive influence towards economic growth, while the public spending in health is negatively affects economic growth. Furthermore, government spending in infrastructure and economic growth positive influence on the human development index, while government spending on education, health negatively affects human development index.
Keywords : Govemment Spending, Economic Growth, Human Development Index, And Path Analysis
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