akhmad pide
Abstract
Todays poverty is still become a serious economic problem. Therefore, both central and local government in reducing poverty are absolutely necessary. The form of partiality can be done in the form of fiscal policy and government expenditure. This study aims to determine the impact of government expenditure district and city on the poverty in South Sulawesi. This study was conducted in 23 districts and cities in South Sulawesi in South Sulawesi, with panel data which combines the time series data in 2007-2013 and the cross section data. This study uses an econometric model with a system of simultaneous equations. The estimation results models on poverty shows that poverty is influenced positively and significantly on the number of population and the number of poor people last year. While education spending has negative and significant effect on poverty. Then the regional gross domestic product a negative effect but no significant effect on poverty reduction. the results of policy simulation shows that the increase in capital expenditure, the total increase in government expenditure, or an increase in education spending in counties and cities in the province of South Sulawesi, had a positive impact on economic growth, reduce poverty, and unemployment. Nevertheless, its impact is relatively small both to economic growth, reduction of unemployment, especially to poverty reduction. Lack of responsiveness of local government spending policies to the reduction of poverty, indicate that fiscal policy carried out by local governments is not entirely pro-poor. Therefore, to improve the response of government policy, it should be the local government needs to be more aligned and focused and policy required the immediate and productive aimed at the poor and food-insecure, especially on the workers and poor peasants by doing mentoring program.
