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"Indonesia has been experiencing a rapid economic growth amid global crises in the United. States and the European Union countries. In addition, government expenditures in Indonesiahave also shown an increasing trend in recent years. Using panel data from 33 provinces inIndonesia from 2007 to 2012, this paper describes the current condition of GDP growth andgovernment expenditures, examines the relationship between government expenditure andeconomic growth, and formulates government expenditure policy in order to harmonize GDPgrowth, poverty alleviation, and income inequality. The result indicates that governmentexpenditure for development, such as building roads, hospital, bridges, electricity, and watersupply, has a significant and positive effect on the regional economic growth rate. Not onlycan government expenditures affect economic growth but it also can reduce poverty bystrengthening human capital through better education and health facilities."

"The capital consists management of saving and investment (as the proxy of savings and loans), FDI, and DDI and is important production factors. The contribution of management of savings and investment are estimated using panel regression and Generalized Method of Moment (GMM) and also series regression. The results show that management of savings and investment has significant effect on economic growth with the respective negative and positive effects. Moreover, FDI, DDI, Labor by Sector (SMA), and Population Growth also play a significant role on growth with distinctive coefficient describing respective effects for each variable on growth. Furthermore, sector-specific analysis gives very dynamic effects on growth in the case of Indonesia. In order to identify long-run bidirectional relationship between variables, we employ Granger Causality Test using Vector Error Correction Model (VECM). As presented in the result and analysis, no variables performing bidirectional relationship in the long-run."

"[Penelitian ini bertujuan untuk menganalisa pengaruh bencana alam terhadap pertumbuhan ekonomi. Dengan menggunakan studi kasus gempa bumi Yogyakarta dan fixed effect model, kesimpulan penelitian ini menunjukan hubungan negatif antara bencana alam dengan pertumbuhan ekonomi pada saat terjadi bencana. Sementara, sesudah bencana alam terjadi pertumbuhan ekonomi lebih tinggi dibandingkan dengan sebelum bencana alam terjadi. Hal ini sesuai dengan teori pertumbuhan neo klasik yang menyatakan bahwa pada saat bencana alam pertumbuhan ekonomi akan menurun, kemudian akan meningkat menuju kondisi steady state. Pertumbuhan ekonomi sesudah bencana alam yang lebih tinggi juga sesuai dengan teori Schumpeter Creative Destruction.

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This study aim to analize the impact of natural disaster on economic growth. By using Yogyakarta earthquake case and fixed effect model, the conclusion of this research show negative relation between natural disaster and economic growth on the year where disaster happens. In other side, economic growth after disaster is higher than economic growth befor disaster. This conclusion consistent with neo clasic growth model which state at the beginning, disaster create economic growth lower than befor then economic will grow faster to achieve steady state. The bigger economic growth after disaster also consistent with Schumpeter Creative Destruction theory.

, This study aim to analize the impact of natural disaster on economic growth. By using Yogyakarta earthquake case and fixed effect model, the conclusion of this research show negative relation between natural disaster and economic growth on the year where disaster happens. In other side, economic growth after disaster is higher than economic growth befor disaster. This conclusion consistent with neo clasic growth model which state at the beginning, disaster create economic growth lower than befor then economic will grow faster to achieve steady state. The bigger economic growth after disaster also consistent with Schumpeter Creative Destruction theory.

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