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VOL. 8, ISSUE 6 (2023)
Government expenditures on fertilizer subsidies: The impact on the added value of Indonesian agriculture
Authors
Mega Amelia Putri, Syafruddin Karimi, Endrizal Ridwan, Fajri Muharja
Abstract
This research aims to analyze the effect of government spending on
fertilizer subsidies on the added value of agriculture in Indonesia. The data
sources from the Ministry of Finance and the World Bank Indicator covering 2005
and 2022. The research method applied is the Autoregressive Distributed Lag
(ARDL) Model. Long-term estimation results show that budget use for subsidized
fertilizers has a negative and significant impact on agricultural added value,
possibly caused by resource allocation distortions and fertilizer use
inefficiencies. However, in the short term, increasing the subsidized
fertilizer budget can provide positive and significant incentives, increasing
agricultural added value. These differences indicate changes in economic
behavior, emphasizing the importance of evaluating policies and resource
management strategies to achieve growth and efficiency in the farming sector.
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Pages:10-17
How to cite this article:
Mega Amelia Putri, Syafruddin Karimi, Endrizal Ridwan, Fajri Muharja "Government expenditures on fertilizer subsidies: The impact on the added value of Indonesian agriculture". International Journal of Advanced Research and Development, Vol 8, Issue 6, 2023, Pages 10-17
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