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Analysis of Fiscal Policy and Fertility in Provincial Government of Indonesia

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  • Oktarini Khamilah Siregar

Abstract

This research aims to analyze whether fiscal policy affects the fertility of the Provincial Government Indonesia using panel data with time series from 2007 to 2017, a cross-section of 33 Provincial governments in Indonesia. Fertility is measured using Total Fertility Rate (TFR) and Birth Rate. Local revenue, regional expenditure, and regional debt do not affect TFR but the regional deficit negatively does. Regarding the birth rate, regional income and deficits have a positive effect, regional expenditure has a negative effect, but regional debt does not affect birth rates in 33 provincial governments in Indonesia. The equivalent ricardien theory does not apply to this study because households do not assist provincial government policies caused by high fertility. As a result, national TFR is not achieved and will affect sustainable fiscal deficits.

Suggested Citation

  • Oktarini Khamilah Siregar, 2020. "Analysis of Fiscal Policy and Fertility in Provincial Government of Indonesia," International Journal of Science and Business, IJSAB International, vol. 4(3), pages 1-17.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:3:p:1-17
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