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Social Assistance Performance on Local Economic Development: Evidence from Island Regions in East Indonesia
Abstract
During an economic situation of uncertainty after the COVID-19 pandemic, social assistance is vital in helping to ease the economic burden on the poor and vulnerable to poverty, especially those living in island-based areas. The research aims to measure the performance of social assistance programs in the regional economy in the North Maluku Archipelago Province. The study uses Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) to measure the efficiency value with the input variables of social aid, unemployment, and inflation. In contrast, the output variable is the poverty. The results revealed that social assistance is not effective in reducing poverty. Several obstacles, namely the minimal amount of the budget, the inaccuracy of the assistance recipients, and the too short of a period for distributing aid were the leading causes of the inefficiency of social aid programs.
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References
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DOI: https://doi.org/10.18196/jesp.v25i1.20988
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