The Impact of Government Expenditure and Investment on Poverty in Gorontalo Province


Authors : Hairialsah Malapu; Nursini; Agussalim

Volume/Issue : Volume 8 - 2023, Issue 1 - January

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3jMCGsE

DOI : https://doi.org/10.5281/zenodo.7623517

The results of this study indicate that there are variables in this study that influence poverty in Gorontalo Province, namely the labor absorption variable. Meanwhile, the variables of regional government expenditure in the fields of capital expenditure and personnel expenditure and economic growth have no effect on the poverty variable in Gorontalo Province in 2007- 2022. This is due to the start of the development of industrial centers in Gorontalo Province which will ultimately have an impact on the absorption of the workforce in Gorontalo Province. The results of this study indicate that there is one variable that has an indirect effect on poverty in Gorontalo Province, that variable is personnel spending through economic growth on poverty in Gorontalo Province. Meanwhile, the variables of regional government spending in capital expenditure and investment and economic growth do not have an indirect effect on poverty in Gorontalo Province through economic growth and employment. This is because the portion of the regular budget for personnel spending is experiencing a positive trend or tends to increase and through a budget policy that focuses on personnel spending to continue to employ auxiliary (honorary) workers in government agencies it is considered to be on target in reducing poverty.

Keywords : Government Expenditure; Investment; Poverty

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