[ABSTRAK
Thesis ini menganalisis pengaruh pengeluaran pemerintah di bidangpendidikan terhadap keikutsertaan siswa dalam pendidikan, dengan menggunakanmetode effek tetap (fixed effect) terhadap data panel pada pemerintahkabupaten/kota di Indonesia selama periode 2008-2010. Analisis dilakukandengan memisahkan keikutsertaan siswa dalam pendidikan dasar (sekolah dasardan sekolah menengah pertama) dan keikutsertaan siswa dalam pendidikanlanjutan untuk melihat perbedaan pada keduanya. Thesis ini menemukan bahwasetelah mengendalikan karakteristik pulau, pengeluaran pemerintah di bidangpendidikan memiliki efek yang positif dan signifikan terhadap keikutsertaan siswadalam pendidikan dasar. Setelah memisahkan wilayah Indonesia bagian timur danbarat, ditemukan bahwa pengeluaran pemerintah hanya memiliki efek yangsignifikan terhadap keikutsertaan siswa dalam pendidikan dasar di wilayahIndonesia bagian timur. Thesis ini juga menemukan bahwa kualitaspenyelenggaraan pemerintahan tidak memiliki pengaruh terhadap efektifitaspengeluaran pemerintah di bidang pendidikan selama periode analisis.

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ABSTRACT
This paper analyses the impact of government education spending oneducation enrolment, using a fixed effect method on a panel data atdistrict/municipal level of government in Indonesia during the period 2008-2010.The analyses separate basic education (elementary and junior high school)enrolment and senior high school enrolment to see whether the effects aredifferent among them. This paper finds that after controlling for islandcharacteristics, government education spending has a positive, significant effecton basic education enrolment. After separating between east region and westregion, this paper finds that government spending only has significant effect onbasic education enrolment in east region. This paper also finds that the quality ofgovernance has no influence on the effectiveness of government educationspending during the period of study., This paper analyses the impact of government education spending oneducation enrolment, using a fixed effect method on a panel data atdistrict/municipal level of government in Indonesia during the period 2008-2010.The analyses separate basic education (elementary and junior high school)enrolment and senior high school enrolment to see whether the effects aredifferent among them. This paper finds that after controlling for islandcharacteristics, government education spending has a positive, significant effecton basic education enrolment. After separating between east region and westregion, this paper finds that government spending only has significant effect onbasic education enrolment in east region. This paper also finds that the quality ofgovernance has no influence on the effectiveness of government educationspending during the period of study.]