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Public Service and Micro-Small Enterprise Developments in Indonesia

Author

Listed:
  • Kartika, Metasari

Abstract

This study aims to analyze the influence of public service on the Micro-Small Enterprise (MSE) developments in Indonesia. The study method used was regression analysis panel data with fixed effect approach; because of the limited data availability, the data was only taken from 2013-2015. The study findings show that public service and education projected by gross participation data have a positive influence on the development of MSE, while the economic growth and minimum wage policy have a negative influence on the development of MSE in Indonesia. Based on those findings, this study concludes that the public service in the form of government spending allocation policy, especially on the service and economic functions, will stimulate the increase of MSE numbers.

Suggested Citation

  • Kartika, Metasari, 2019. "Public Service and Micro-Small Enterprise Developments in Indonesia," MPRA Paper 91577, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91577
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    References listed on IDEAS

    as
    1. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    2. Virginie Vial, 2011. "Micro-entrepreneurship in a hostile environment: evidence from Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 47(2), pages 233-262.
    3. Wing Yuk, 2005. "Government Size and Economic Growth: Time-Series Evidence for the United Kingdom, 1830-1993," Econometrics Working Papers 0501, Department of Economics, University of Victoria.
    4. Tulus Tambunan, 2008. "SME development, economic growth, and government intervention in a developing country: The Indonesian story," Journal of International Entrepreneurship, Springer, vol. 6(4), pages 147-167, December.
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    Keywords

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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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