Public Spending and Financial Inclusion and Their Impact on Inclusive Growth In Indonesia: A Spatial Approach

Inclusive growth results in equal access to the benefits of and, by that, reduces disparities. Public spending plays an important role supporting economic and people's welfare. On other hand, financial inclusion has ability expand opportunities participate growth. Using data on government 34 provinces Indonesia 2015-2019, this study aims examine link between two towards inclusive As a result, education inclusion, as well investment trade openness, can promote Expanding result public will boost labor capacity productivity. Meanwhile, more affordable credit be realized through system. Conversely, due health development gaps, negative impact The spatial error model with queen contiguity weight matrix shows significant effect term or residual. implication is that policies for expanding education, health, digital increasing literacy need carried out ensure affordability considering regional aspects.