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The Effectiveness Of Health Budget In Reducing Poverty: Evidence In Indonesia

Author

Listed:
  • IDARYANI

    (M.Si, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia)

  • Masbar RAJA

    (Prof, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia)

  • ALIASUDDIN

    (Dr, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia)

  • Nasir MUHAMMAD

    (Dr, Economics and Business Faculty of Universitas Syiah Kuala, Indonesia)

Abstract

The purpose of this study is to analyze the effectiveness of health expenditures in reducing poverty in Indonesia. The data used was panel data from three specific autonomous regions: Aceh, Papua, and West Papua, data from 2006-2017. The method of analysis used in the study was the ARDL Panel model. The results of the study show that in the short term, health expenditures o not affect poverty in the autonomous regions. The results from each region showed no short-term effect. Long-term estimates show that health spending can reduce poverty by up to 6 percent assuming cateris paribus. Adjustments of these impacts will occur every 9.6 months. This study recommends that the government increases the health budget so that the poor can get protection and avoid health problems. The study also recommends increased regulation of health expenditures to make it more effective and have an impact in the short term.

Suggested Citation

  • IDARYANI & Masbar RAJA & ALIASUDDIN & Nasir MUHAMMAD, 2019. "The Effectiveness Of Health Budget In Reducing Poverty: Evidence In Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 21-36, December.
    • Handle: RePEc:hrs:journl:v:xi:y:2019:i:3:p:21-36
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    More about this item

    Keywords

    Health Budget; Poverty; ARDL Panel; Special Autonomy;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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