Vol 3, No 2 (2015)
Local Government Expenditure, Economic Growth and Income Inequality in South Sulawesi Province
Sabir, Ahmad Erani Yustika, Susilo, Ghozali Maskie
Abstract
This paper investigates the effect of local government expenditure on economic growth and the effects of local government expenditure and economic growth on income inequality over the period (2008-2013). We used cross-section and time series data (pooled data) in 24 regencies/ cities in South Sulawesi. To achieve this, were used Simultaneous equations with recursive model. The results suggest that the local government expenditure has a positive and significant effect on economic growth and income inequality. While, economic growth has a negative and significant effect on income inequality. Therefore, its recommended government should direct its expenditure toward the productive sectors such as agricultural sector because this sector more absorbed than other sectors.
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Keywords
Local Government Expenditure; Economic Growth; Income Inequality; Recursive Model
Publication information
Volume 3, Issue 2
Year of Publication: 2015
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Sabir, Erani Yustika, A., Susilo, Maskie, G.: Local Government Expenditure, Economic Growth and Income Inequality in South Sulawesi Province. Journal of Applied Economics and Business, Vol 3, No. 2, 61-73. (2015)