AIDS SOCIAL EXPENDITURES, POVERTY AND INEQUALITY IN TIME OF COVID-19 PANDEMIC IN INDONESIA
DOI:
https://doi.org/10.21837/pm.v22i33.1546Keywords:
COVID-19, Aids Social Expenditures, Poverty, InequalityAbstract
The research investigates the correlation between social aid expenditure and poverty, and inequality across 34 Indonesian provinces from 2004 to 2022. Utilizing the two-step Generalized Method of Moments (GMM) estimate, it examines the impact of social aid expenditure on poverty rates and the Gini coefficient during the COVID-19 pandemic. Results show a significant decrease in the proportion of the impoverished population due to social aid expenditure, with minimal effects on inequality. The study highlights a substantial increase in both poverty and inequality during the pandemic, particularly in rural and urban areas. Analyzing the relationship between social welfare spending and COVID-19 impact reveals a positive influence on disadvantaged populations and inequality in Indonesian provinces. This underscores the need for a comprehensive review of social aid programs, especially amidst COVID-19 challenges.
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