The research in this thesis aims to acknowledge and analyse government spending from consumption spending and investment spending as well as the realization of private sector investment. Results of the analysis are then used to determine its influence on poverty levels (Y1) and the level of unemployment (Y2) in 35 districts of Central Java province in 2008 in the period up to the year 2013 separately. Methods of analysis using regression data because the data pane in the form of cross section and time series with three main variables i.e. shopping consumption (X 1) consists of shopping goods (X 11), expenditures of grant (X12), social assistance (X13) and the investment consists of a shopping cart (X 21) machine tools, shopping building (X 22), shopping streets, the irrigation network, (X23), shopping and other fixed assets (X24) as well as the realization of private sector investment (X 3). In addition to the variables used are variable due to the occurrence of lagtime but only on investment spending and the realization of the private sector, the variable contains the lagtime shopping equipment machines (X 21), shopping (X221) building, shopping streets, the irrigation network, (X231), shopping and other fixed assets (X241) as well as the realization of private sector investment (X31). The development of the hypothesis of this research is thought to have negative influence between government spending and private investment towards the realization of the poverty rate and unemployment rate in 35 Districts Of Central Java province in 2008 year period up to the year 2013 both in the year in question and the condition of the lagtime. Results of government spending and private investment has proved to be a realization relationship upside-down to the level of poverty and unemployment levels are jointly seen from the result value of Fhitung for the ... Calculation of partially seen from the thitung test, the variable shopping goods (X 11), expenditures of grant (X12), social assistance (X13), shopping (X 21) machine tools, shopping building (X 22), shopping streets, the irrigation network, (X23), shopping and other fixed assets (X24), the realization of private sector investment (X 3), shopping (X 21) machine tools, shopping building (X221), shopping streets, the irrigation network, (X231), shopping and other fixed assets (X241) as well as the realization of private sector investment (X31) has the reverse relationship of the level of poverty and unemployment levels. However the variable shopping goods (X 11), expenditures of grant (X12), social assistance (X13), shopping (X 21) machine tools, shopping building (X 22), shopping streets, the irrigation network, (X23), shopping and other fixed assets (X24), the realization of private sector investment (X 3), shopping (X 21) machine tools, shopping building (X221), shopping streets, the irrigation network, (X231), shopping and other fixed assets (X241) as well as the realization of private sector investment (X31) have a positive influence, this happens because those variables do not impact directly on the level of poverty and unemployment levels. Keywords: influence of government spending, the level of poverty and unemployment rate, 35 city Regency, Central Java province, panel data regression.
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