Electronic Theses and Dissertation

The objective of this research is to analyze the impact of government expenditure of education and health and the specific allocation fund of education and health sector on poverty reduction for period of 2004.2009. the research uses the panel data among districs and cities in aceh province during 2004-2009. these data are from central statistics bureau (bps) of aceh, aceh of finance and asset managing department (dppka), regional development planning board (bappeda) aceh, undp reports and world bank reports. the methods of analysis used in this research is descriptive analysis and quantitative analysis of panel data. the methods of estimating panel data used in this study is fixed effect model the result show that both of independent variables have negative sign, though only the government expenditure of education and health sector have significant effect on poverty reduction in aceh province at significance level of a10%. the implication of this study is that the aceh government should encourage government expenditure of education sector and health sector to reduce poverty rate in aceh province. keyword : poverty, government expenditure, specific allocation fund, education, health, panel data, fixed effect.