Abstract

The economic development of region is series of activities carried out consciously and continuously to realize better and more shared situation. Some of factors that cause decline in poverty levels are government spending, investment, economic growth. By looking at the decline in poverty rates in Bali, the researchers want to conduct research on the effects of government spending and investment on economic growth and poverty levels. Data collection through BPS. Path analysis was used. The results of the analysis show that government spending and investment have a positive and significant direct influence on economic growth. Government expenditures have a negative and significant direct influence on poverty levels. Investment has a positive but not significant direct influence on poverty levels and economic growth has a positive and significant direct influence on poverty levels. Government spending and investment do not have an indirect effect on the level of poverty through economic growth.

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