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Measurement of Productivity of Local Government Spending in Poverty Alleviation

In: Proceedings of the 1st Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA 2023)

Author

Listed:
  • Ratu Eva Febriani

    (Universitas Bengkulu, Faculty of Economics and Business)

  • Roosemarina Anggraini Rambe

    (Universitas Bengkulu, Faculty of Economics and Business)

  • Yusnida Yusnida

    (Universitas Bengkulu, Faculty of Economics and Business)

  • Bertha Iin Esti Indraswanti

    (Universitas Bengkulu, Faculty of Economics and Business)

Abstract

This study aims to measure the productivity of local government spending in alleviating poverty in West Java, Indonesia. The input used were local government spendings per capita, which consists of spending on education, health, economy, social protection, as well as housing and public facilities. The output applied was poverty reduction. The measurements of government spending efficiency and productivity were carried out in 26 local governments in West Java Province in 2018-2020. Malmquist productivity index was applied as analytical method. The results show that the average of TFP (total factor productivity) was 0.965. It shows the low productivity level of local government spending in poverty alleviation. Furthermore, only 12 local governments (46% of 26 local governments) were able to use spending productively in reducing poverty.

Suggested Citation

  • Ratu Eva Febriani & Roosemarina Anggraini Rambe & Yusnida Yusnida & Bertha Iin Esti Indraswanti, 2023. "Measurement of Productivity of Local Government Spending in Poverty Alleviation," Advances in Economics, Business and Management Research, in: Roosemarina Anggraini Rambe & Lizar Alfansi & Robinson Robinson & Dewi Rahmayanti & Agustina Suparya (ed.), Proceedings of the 1st Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA 2023), pages 198-204, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-328-3_24
    DOI: 10.2991/978-94-6463-328-3_24
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