A Comparative Study of Local Government Expenditure Efficiency in Poverty Alleviation in Bengkulu Province

Authors

  • Levia Veronika University of Bengkulu
  • Roosemarina Anggraini Rambe University of Bengkulu

DOI:

https://doi.org/10.55927/eajmr.v4i2.6

Keywords:

Dea, Efficiency, Economic Spending, Poverty, Social Welfare Spending

Abstract

The objectives of this study are to (1) measure the efficiency of government expenditure in reducing poverty in 10 districts/cities in Bengkulu Province in 2017 and 2021 and (2) compare the levels of efficiency. The analysis method used is Data Envelopment Analysis (DEA) with a Variable Return to Scale (VRS) approach, employing an Output-Oriented model. The inputs considered are economic spending and community welfare, while the output measured is the poverty level. The results of the study indicate that in both 2017 and 2021, there were three efficient districts. In 2017, the districts that demonstrated relative efficiency were the Kaur, Lebong, and Central Bengkulu Regencies. In 2021, the efficient districts were Muko-muko, Kepahiang, and Central Bengkulu Regencies.

References

Ambarkhane, D., Singh, A. S., & Venkataramani, B. (2020). Measuring efficiency of Indian states for reducing poverty using data envelopment analysis. Poverty and Public Policy, 12(4), 357–385. https://doi.org/10.1002/pop4.294

Rambe, R. A., Anitasari, M., & Febriani, R. E. (2024). Local Government Pro-Poor Growth Spending Efficiency And Their Determinants In Indonesia. Local Government Pro-Poor Growth Spending Efficiency And Their Determinants In Indonesia. https://doi.org/10.53555/kuey.v30i4.1633

Antonelli, M. A., & De Bonis, V. (2019). The efficiency of social public expenditure in European countries: a two-stage analysis. Applied Economics, 51(1), 47–60. https://doi.org/10.1080/00036846.2018.1489522

Brini, R., & Jemmali, H. (2015). Public Spending Efficiency, Governance, and Political and Economic Policies: is There a Substantial Causal Relation? Evidence From Selected Mena Countries. www.erf.org.eg

Onuoha, F. C., & Agbede, M. O. (2019). Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis. Journal of Economics, Management and Trade, 1–14. https://doi.org/10.9734/jemt/2019/v24i530175

Chan, S. G., & Karim, M. A. Z. (2012). Public spending efficiency and political and economic factors: Evidence from selected East Asian countries. Economic Annals, 57 (193), 7-23.

Coelli, T. J., Dodla Sai Prasada Rao, C. J. O'Donnell, & George Edward Battese. (2005). An Introduction to Efficiency and Productivity Analysis, 2nd ed. New York: Springer.

Cooper, W. W., Lawrence M. Seiford, & Kaoru Tone. (2002). Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References, and DEA Solver Software. New York: Kluwer Academic Publishers.

Cyrek, M. (2019). Government social spending in the eu countries: Efficiency in poverty and income inequality reduction. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(3), 405–424. https://doi.org/10.24136/eq.2019.019

Dinar, Y. B. K. L. (2022). Efficiency Of The National Economic Recovery Program In Withstanding The Impact Of The Covid-19 Pandemic. Jurnal Litbang Sukowati : Media Penelitian Dan Pengembangan, 6(1), 68–83. https://doi.org/10.32630/sukowati.v6i1.324

Florennica, E., & Febriani, R. E. (2023). Do Financial Deepening, Government Spending, and Unemployment Benefit Poverty Reduction in Indonesia? Jurnal Ekonomi Pembangunan, 20(2), 193–204. https://doi.org/10.29259/jep.v20i2.18610

Fonayet, F. V., Eraso, Á. B., De, J., & Sánchez, A. (2020). Efficiency of Social Expenditure Levels in Reducing Poverty Risk in the EU-28. In Poverty & Public Policy (Vol. 9, Issue 4).

Frenda, A., Sepe, E., & Scippacercola, S. (2021). Efficiency analysis of social protection expenditure in the Italian Regions. Socio-Economic Planning Sciences, 73. https://doi.org/10.1016/j.seps.2020.100965

Havizd, M., & Rambe, R. A. (2023). Comparative Study of Local Government Spending Efficiency in Achieving HDI Components Before and During the Covid-19 Pandemic. In Management, Business and Accounting (Vol. 1, Issue 1). https://proceeding-bicemba.feb.unib.ac.id/index.php/bicemba

He, G., Li, Z., Yu, L., & Zhou, Z. (2023). Contribution to poverty alleviation: A waste or benefit for corporate financing? Journal of International Financial Markets, Institutions and Money, 89. https://doi.org/10.1016/j.intfin.2023.101875

Lee, J. C., Won, Y. J., & Jei, S. Y. (2019). Study of the relationship between government expenditures and economic growth for China and Korea. Sustainability (Switzerland), 11(22). https://doi.org/10.3390/su11226344

Mohanty, R. K., & Bhanumurthy, N. R. (2021). Assessing public expenditure efficiency at the subnational level in India: Does governance matter? Journal of Public Affairs, 21(2). https://doi.org/10.1002/pa.2173

Montes, G. C., Bastos, J. C. A., & de Oliveira, A. J. (2019). Fiscal transparency, government effectiveness and government spending efficiency: Some international evidence based on panel data approach. Economic Modelling, 79, 211–225. https://doi.org/10.1016/j.econmod.2018.10.013

Nahumuri, L. L. (2019). Esensi Dan Urgensi Pengeluaran Pemerintah Untuk Pembangunan Daerah.

Ngubane, M. Z., Mndebele, S., & Kaseeram, I. (2023). Economic growth, unemployment and poverty: Linear and non-linear evidence from South Africa. Heliyon, 9(10). https://doi.org/10.1016/j.heliyon.2023.e20267

Nur Aprida, & Azansyah. (2024). Efficiency of Government Spending in Reducing Poverty Rate in Bengkulu Province. Formosa Journal of Multidisciplinary Research, 3(5), 1553–1562. https://doi.org/10.55927/fjmr.v3i5.9529

Pratama, N. R. N. S., & Utama, M. S. (2019). Pengaruh pengeluaran pemerintah dan investasi terhadap pertumbuhan ekonomi dan tingkat kemiskinan di kabupaten/kota provinsi bali. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 651–680.

Rambe, R. A., Purmini, P., Armelly, A., Alfansi, L., & Febriani, R. E. (2022). Efficiency Comparison of Pro-Growth Poverty Reduction Spending before and during the COVID-19 Pandemic: A Study of Regional Governments in Indonesia. Economies, 10(6). https://doi.org/10.3390/economies10060150

Siahaan, J. E., & Rambe, R. A. (2023). Analysis of the Efficiency of Local Government Spending in Poverty Alleviation and Unemployment Reduction in West Java Province. In Management, Business and Accounting (Vol. 1, Issue 1). https://proceeding-bicemba.feb.unib.ac.id/index.php/bicemba

Zameer, H., Shahbaz, M., & Vo, X. V. (2020). Reinforcing poverty alleviation efficiency through technological innovation, globalization, and financial development. Technological Forecasting and Social Change, 161. https://doi.org/10.1016/j.techfore.2020.120326

Downloads

Published

2025-02-25