Impact of Regional Government Expenditure and Investment on Internal Migration and Economy in Sulawesi Selatan, Indonesia

Authors

  • Ambar Dwi Santoso Education and Training Center BPS, Jagakarsa-South Jakarta 12620, Indonesia
  • Bonar M. Sinaga Faculty of Economics and Management, Bagor Agricultural University, Dramaga-Bogor 16680, Indonesia
  • Sri Hartoyo Faculty of Economics and Management, Bagor Agricultural University, Dramaga-Bogor 16680, Indonesia
  • M. Parulian Hutagaol Faculty of Economics and Management, Bagor Agricultural University, Dramaga-Bogor 16680, Indonesia

Keywords:

regional government expenditure, investmen, internal migration, regional economy.

Abstract

Government spending and investment are capital in economic development so that the number and composition are important to set properly. This study aims to analyze the impact of regional government expenditure and investments in internal migration and economy in Sulawesi Selatan, Indonesia. The analysis used regional series data from 1995 to 2015. The simultaneous equations model consisting 43 structural equations and 30 identity equations were estimated by the two-stage least squares method. The results of this study indicate that the economic development in the region Makassar is higher compared to other regions in Sulawesi Selatan, as well as internal migration flows to the region Makassar have increased. Through the policy of increasing the value of investments in the agricultural sector by 25 percent can improve the overall economy in the outside of Makassar region, and can reduce the flow of migration into Makassar at 0.050 percent.

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Published

2017-03-01

How to Cite

Santoso, A. D., M. Sinaga, B., Hartoyo, S., & Hutagaol, M. P. (2017). Impact of Regional Government Expenditure and Investment on Internal Migration and Economy in Sulawesi Selatan, Indonesia. International Journal of Sciences: Basic and Applied Research (IJSBAR), 32(1), 169–180. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/7017

Issue

Vol. 32 No. 1 (2017)

Section

Articles

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