ANALISIS PENGARUH PENGELUARAN PEMERINTAH ATAS PENDIDIKAN, KESEHATAN DAN INFRASTRUKTUR TERHADAP PERTUMBUHAN EKONOMI INDONESIA PERIODE 1969- 2009

Abstract

The objective of this research is analyzing how government’s expenditure on education, health and infrastructure influence economic growth for period of 1969- 2009. Government expenditure on infrastructure is represented by government’s expenditure variables on housing and government’s expenditure variables on transportation. The government’s expenditures on education, health and infrastructure are basically investments on economic growth. The effect of the development on those three sectors has no direct impact but it requires several periods to feel the aftereffects. There are time lags as the government issues the state budget for those three sectors, for the effect of the policy, a study using a long time series is needed. The research with such time series would help to observe the impact of government’s expenditure on those three sectors to the economic growth. Government investment in education, health and infrastructure will lead to the improving quality of human resources and material infrastructures; it will also spur economic investment as a result. Economic investment will affect the economic growth, because the number of the capital available for development. The research model used to analyze the hypothesis of this research was the Error Correction Model (ECM). The model was expected to explain the short and long term behavior. Error model may include various variables in analyzing the longterm economic phenomenon and assessing the consistency of the empirical models using economic theory. In addition, this model is able to find a solution to the problem of non stationary time series variables in econometrics. The regression results of the ECM model mentioned above indicated that in the short term, the variable of government’s expenditures on transportation is the only variable that is significantly influential on economic growth. The government’s expenditures on education, health and housing do not significantly affect the economic growth. While in the long term, the variables of government’s expenditure on housing and transportation significantly affect the economic growth, whereas the variable of government’s expenditure on education and health do not affect economic growth.