The Efficiency Analysis of Government Expenditure on Education and Health in Sumatra: The DEA Approach

Sanya Hibatulmedina; Roosemarina Anggraini Rambe

doi:10.29259/jep.v19i2.15795

The Efficiency Analysis of Government Expenditure on Education and Health in Sumatra: The DEA Approach

Sanya Hibatulmedina, Roosemarina Anggraini Rambe

Abstract

The purposes of this study are to measure the level of the relative efficiency of educational spending and healthcare spending in achieving Mean Years of Schooling (MYS) and life expectancy at regency and city in Sumatera. Data Envelopment Analysis (DEA) were employed for a data set of the spending of 154 local governments in 2019 with an output-oriented model. The approach used is a variable return to scale. In measuring efficiency, two input were used are (i) Government spending of the educational function and (ii) Government spending of the healthcare function, while two output were used are (i) Mean Years of Schooling (MYS) and (ii) life expectancy. The results show that, of the 154 local governments, 6 across ten regency and city in Sumatra, were relatively efficient. There are Gunungsitoli, Bukit Tinggi, Padang Panjang, Solok, Banda Aceh and West Nias.

Keywords

educational spending, DEA, mean years of schooling, life expectancy, local government

Full Text:

PDF

References

Adam, A., Delis, M., & Kammas, P. (2011). Public sector efficiency: leveling the playing field between OECD countries. Public Choice, 146(1–2), 163–183. https://doi.org/10.1007/s11127-009-9588-7

Afonso, A & Kazemi, M. (2016). Assessing Public Spending Efficiency in 20 OECD Countries. Inequality and Finance in Macrodynamics. New york-USA: Springer 2(23), 7-42. https://doi.org/10.1007/978-3-319-54690-2_2

BPS. (2020). Indeks Pembangunan Manusia 2020.

Brini, R & Jemmali, H. (2013). Public spending efficiency, governance, political and economic policies: Is there a substantial causal relation? Evidence from selected MENA countries. International Journal of Economics and Financial Management, 1(1), 24-34.

Boetti, L., Piacenza, M., & Turati, G. (2012). Decentralization and local governments’ performance: How does fiscal autonomy affect spending efficiency? Public Finance Analysis, 68(3), 269-302. https://doi.org/10.1628/001522112x653840

Bogetoft, P & Otto, L. (2011). Brenchmarking with DEA, SFA and R. International Series in Operations Research and Management Science. New york-USA: Springer. https://doi.org/10.1007/978-1-4419-7961-2

Chan, S.G & Karim, M.Z.A. (2012). Public spending efficiency and political and economic factors: Evidence from selected East Asian countries. Economic Annals, 57(193), 7-24. https://doi.org/10.2298/EKA1293007C

Coelli, T.J., Rao, D.S.P., O’Connel, C.J & Battese, G.E. (2005). An Introduction to Efficiency and Productivity Analysis. New york-USA: Springer

Dufrechou, P.A. (2016). The efficiency of public education spending in Latin America: A comparison to high-income countries. International Journal of Educational Development, 49(c), 188-203. https://doi.org/10.1016/j.ijedudev.2016.03.005

Fidalgo, E., Carcaba, A., & Ventura, J. (2010). Value efficiency analysis of health systems: Does public financing play a role? Journal of Public Health, 18(4),337-350. DOI:10.1007/s10389-009-0311-4

Hsu, Y.C. (2013). The efficiency of government spending on health: Evidence from Europe and Central Asia. The Social Science Journal, 50(4), 665–673. https://doi.org/10.1016/j.soscij.2013.09.005

Indriati, N.E. (2014). Analisis Efisiensi Belanja Daerah di Kabupaten Sumbawa (Studi Kasus Bidang Pendidikan dan Kesehatan). JESP. 6(2), 192-205

Javarov, E & Gunnarsson, V. (2008). Government Spending on Health Care and Education in Croatia: Efficiency and Reform Option. IMF Working Paper: Kroasia. (136), 7-34. https://doi.org/10.5089/9781451869958.001

Kawedar, W., Abdul, R & Sri, H. (2008). Akuntansi Sektor Publik. Semarang: Universitas Diponegoro

Kurnia, A.S. (2006). Model pengukuran kinerja dan efisiensi sektor publik metode free disposable hull (FDH). Economic Journal of Emerging Markets,11(1), 1-20

Mangkoesoebroto, G. (1999). Ekonomi Publik. Yogyakarta: BPFE.

Mardiasmo. (2002). Akuntansi Sektor Publik. Yogyakarta: Andi.

Olanubi, S.O & Osede, O.E. (2016). The efficiency of government spending on health: A comparison of different administrations in Nigeria. Journal of Policy Modelling, 39(1), 79-98. https://doi.org/10.1016/j.jpolmod.2016.12.002.

Pertiwi, L.D. (2007). Efisiensi Pengeluaran Pemerintah Daerah Di Propinsi Jawa Tengah. Jurnal Ekonomi Pembangunan, 12(2), 123-139. DOI: https://doi.org/10.20885/ejem.v12i2.511

Porcelli, F. (2011). Electoral accountability and local government efficiency: Quasi-experimental evidence from the Italian health care sector reforms. Economics of Governance, 15(3), 221-251. https://doi.org/10.2139/ssrn.1932052

Prajanti, S. D. W. (2013). Metode Analisis Efisiensi Produksi dan Pengambilan Keputusan pada Bidang Ekonomi Pertanian. Semarang: Unnes Press.

Prasetyowati, Y.W & Haryanto, T. (2018). Determinan Efisiensi Teknis Belanja Pemerintah Sektor Pendidikan dan Kesehatan Kabupaten/kota di Provinsi Jawa Timur. ASSETS: Jurnal Ilmiah Ilmu Akuntansi, Keuangan dan Pajak, 2(2), 47-55

Rambe, R. A. (2020). Implications of Regional Split in Local Government Efficiency: Evidence from North Sumatra, Indonesia. Jurnal Ekonomi dan Studi Pembangunan, 12(2), 159-175

Schultz, T. W. (1961). Investment in Human Capital. American Economic Review, 51, 1-17.

Suparmoko. (2013). Keuangan Negara: Dalam Teori dan Praktik. Yogyakarta-Indonesia: FEB UGM

Todaro, M. P. (2000). Economic Development, Seventh Edition. New York: University Addison Mesley.

DOI: https://doi.org/10.29259/jep.v19i2.15795

Refbacks

There are currently no refbacks.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Jurnal Ekonomi Pembangunan
Jalan Raya Palembang-Prabumulih Km. 32
Jurusan Ekonomi Pembangunan, Fakultas Ekonomi Universitas Sriwijaya
Indralaya, Sumatera Selatan, Indonesia
Email: jep.unsri@gmail.com, Tel/Fax : (0711)580231

p-ISSN: 1829-5843, e-ISSN 2685-0788