THE EFFECTIVENESS OF HEALTH BUDGET IN REDUCING POVERTY: EVIDENCE IN INDONESIA

Idaryani (), Masbar Raja (), Aliasuddin () and Nasir Muhammad ()
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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

Regional Science Inquiry, 2019, vol. XI, issue 3, 21-36

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.

Keywords: Health Budget; Poverty; ARDL Panel; Special Autonomy (search for similar items in EconPapers)
JEL-codes: C23 H51 I38 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:xi:y:2019:i:3:p:21-36

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