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Title: A Study of Regional Governments in Indonesia Compares the Effectiveness of Pro-Growth Poverty Reduction Spending Before and During the COVID-19 Pandemic
Abstract: All regions of Indonesia have experienced negative economic growth during the COVID-19 pandemic. Additionally, it raised the nation’s poverty level. To maintain economic growth and simultaneously lower poverty, the government must fund pro-growth and anti-poverty initiatives. This study aims to assess the relative effectiveness of local government spending on pro-growth poverty reduction in seven Indonesian regions. This study compares the efficiency ratings from 2015 to 2019 and 2020 before and during the COVID-19 pandemic. The inputs consist of five different categories of government spending: infrastructure, economic, social protection, health, and education. Economic expansion and a decline in poverty are the results. An output-oriented model and return to scale variable approach are used in data envelopment analysis. According to the findings, Sulawesi had the lowest average local government efficiency score and Kalimantan had the highest. The COVID-19 pandemic’s local governments’ effectiveness scores varied by region; they were stable in Kalimantan, rose in Java-Bali, Sumatra, and Sulawesi, and fell in Nusa Tenggara, Maluku, and Papua. The study comes to the conclusion that economic growth and the decline in poverty can both be used to gauge government effectiveness. Local governments should think about allocating pro-growth, poverty-reduction funds to enhance the conditions of both outputs if they want to be comparatively efficient.
Keywords: efficiency; spending on pro-growth poverty reduction; economic growth; poverty reduction; DEA; COVID-19
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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