Pengaruh Belanja Pemerintah Pusat Terhadap Peningkatan Produksi Padi di Provinsi Jawa Barat

Abstract

Well allocated government budget is a requirement for increasing rice production as well as avoiding underinvestment or disinvestment. This study aims to analyze impacts of government expenditures on rice production increase. Secondary data consisting of 7-year time series data (2007-2013) and 20 cross section data of West Java Province were used in this study. The results of GLS (generalized least square) with a dummy-variables estimation method showed that in the short run the government expenditures on fertilizer subsidy and improved seed assistance had significant impact on rice production in West Java Province at 5 percent level of significance with marginal elasticities each of 0.0056 and 0.038, while tertiary irrigation rehabilitation had significant impact at 15 percent level of significance with marginal elasticity of 0.0206. Fertilizers and seeds were direct inputs in rice farming that had significant impact on rice production. On the other hand, tertiary irrigation rehabilitation needed time lag in influencing rice production. In the short run, capital assistance and field school had no impact on rice production.