Analisis Pengeluaran Publik dan Pertumbuhan Ekonomi dalam Mengurangi Kemiskinan di Sumatera Utara

Abstract

The aim of research is to the analyze influence of public expenditure and economic growth in decreasing poverty in north sumatera by using panel data for 25 city in north sumatera during 25 years (1984-2005). Generalized least square (GLS) method with random effects model by using hausman test. The result shows that public expenditures have negative influence but not significant to poverty rate in north sumatera. It means increasing in public expenditures will decrease poor people indirectly in north sumatera. Economic growth has positively influence and significant the total of poor people in North Sumatera. It means that the increasing economic growth will increase to poor people. Regional Outonomy as dummy variable has positively influence and significant to poor people in North Sumatera. It means that regional outonomy increases poor people. The result also shows that the largest poor people in north sumatera are nias, langkat, tapanili selatan, simalungun, tapanuli tengah, madina dan tapanuli utara.