The Effect Of Government Spending And Investment On Unemployment And Poverty Rate In North Penajam Paser District (PPU) East Kalimantan Province

Authors

  • Muhajir Muhajir Mulawarman University
  • Aji Sofyan Effendi Mulawarman University
  • Siti Amalia Mulawarman University
  • Rahcmad Budi Suharto Mulawarman University
  • Akbar Lufi Zulfikar Mulawarman University

DOI:

https://doi.org/10.55606/ijemr.v2i2.115

Keywords:

Government Spending, Investment, Unemployment Rate, Poverty Rate

Abstract

Sources of financing are needed to manage and develop the region, which can come from Government Revenue and Investment in the area. This study analyzes the effect of Government Spending and Investment on the Unemployment Rate and Poverty Rate. Using secondary data and Structural Equation Modeling, empirically proven that greater Government Spending will decrease the Unemployment Rate and Poverty Rate. The perfect mediating role of the Un-employment Rate on the relationship between Government Spending and the Poverty Rate While Investment does not significantly affect the Unemployment Rate and Poverty Rate. Policies are needed so that existing investments, com-pulsory involving the local workforce, aim to reduce the area's poverty level.

References

Anderson, E., d’Orey, M. A. J., Duvendack, M., & Esposito, L. (2018). Does Government Spending Affect Income Poverty? A Meta-regression Analysis. World Development, 103. https://doi.org/10.1016/j.worlddev.2017.10.006

Brady, D. (2019). Theories of the Causes of Poverty. In Annual Review of Sociology (Vol. 45). https://doi.org/10.1146/annurev-soc-073018-022550

Kartika, D., Viphindrartin, S., & ... (2021). Impact of Government Expenditure on Poverty Rate Reduction in East Java Province. Wiga: Jurnal …, 11(2), 120–127. http://ejournal.itbwigalumajang.ac.id/index.php/wiga/article/view/606

Prasetyo, P. E., & Thomas, P. (2021). A Simple Mitigation Model of Poverty Reduction in Indonesia. Open Journal of Business and Management, 09(06). https://doi.org/10.4236/ojbm.2021.96152

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Published

2023-09-20

How to Cite

Muhajir Muhajir, Aji Sofyan Effendi, Siti Amalia, Rahcmad Budi Suharto, & Akbar Lufi Zulfikar. (2023). The Effect Of Government Spending And Investment On Unemployment And Poverty Rate In North Penajam Paser District (PPU) East Kalimantan Province . International Journal of Economics and Management Research, 2(2), 235–238. https://doi.org/10.55606/ijemr.v2i2.115

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