Measurement of Productivity of Local Government Spending in Poverty Alleviation

Ratu Eva Febriani (), Roosemarina Anggraini Rambe, Yusnida Yusnida and Bertha Iin Esti Indraswanti
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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

A chapter in Proceedings of the 1st Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA 2023), 2023, pp 198-204 from Springer

Abstract: 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.

Keywords: Productivity; Poverty alleviation; Government spending; Malmquist productivity index (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-328-3_24

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DOI: 10.2991/978-94-6463-328-3_24

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