Effect of local government expenditure on the ratio of output to capital: Evidence from panel data at China’s provincial level

2011 ◽  
Vol 6 (2) ◽  
pp. 249-270 ◽  
Author(s):  
Tao Jin ◽  
Jianhui Zhang
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Government Expenditure ◽  
Provincial Level ◽  
Local Government Expenditure

scholarly journals Efficiency and Effectiveness of Government Expenditure on Education at Districts/Cities Level in East Java Indonesia

2017 ◽  
Vol 13 (8) ◽  
pp. 91
Author(s):  
Achmad Solihin ◽  
Djoko Mursinto ◽  
Lilik Sugiharti
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Government Expenditure ◽  
Educational Outcome ◽  
Household Expenditure ◽  
Panel Data Regression ◽  
Data Regression ◽  
Efficiency And Effectiveness ◽  
Local Government Expenditure ◽  
Regional Product

The purpose of this study is to investigate and analyze the efficiency and effectiveness of local government expenditure on education sector in districts and cities level of East Java, during the periods 2007-2014. Furthermore, this study will evaluate the impacts of local government expenditure, household expenditure for education, and regional product domestic bruto or (PDRB) on the educational outcomes, namely education index.Data Envelopment Analysis (DEA) is selected as the methodology for analyzing the efficiency of local government expenditure on educational outcome. The model assumes constant return to scale (CRS) and variable return to scale (VRS). Measurement of the effectiveness of government spending is done by using panel data regression. Data for supporting the analyses is panel data from 38 districts and cities in East Java for the periods of 2007 – 2014. The results show that government expenditure in educational sector is relatively inefficient. Government Expenditure for Education (PPP) has no significant impact on educational index, while Household expenditure for education (PPRT) and GRDP per Capita positive has significant impact on the Education Index (IP). This imply that government expenditure for educational sector is not effective improving educational index.

Determinan Penerimaan dan Belanja Daerah: Studi pada 10 Provinsi di Indonesia

2017 ◽  
Vol 2 (1) ◽  
pp. 57-77
Author(s):  
Eliza Noviriani ◽  
Anniza Dwi Febrianty
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Local Government ◽  
Significant Influence ◽  
Government Expenditure ◽  
Domestic Product ◽  
Government Revenue ◽  
Local Government Expenditure

The aim of this study is to determine local government revenue and expenditure determinants from 10 provinces in Indonesia. The factors which affect local government revenue are Gross Regional Domestic Product (GDPR), inflation, and exchange rate. The local government revenue will affect local government expenditure. By using panel data, the research showed that variable of GDPR did not have influence on local government revenue. In addition, variable of inflation had a negative and significant influence on the local government revenue. Exchange rate had a positive and significant effect on local government revenue. Finally, local government revenue had a positive and significant impact on local government expenditure.                         Abstrak Penelitian ini bertujuan untuk menguji determinan penerimaan dan belanja daerah di 10 Provinsi di Indonesia. Adapun faktor-faktor yang mempengaruhi penerimaan daerah adalah Produk Domestik Regional Bruto (PDRB), inflasi serta kurs. Penerimaan daerah akan berpengaruh terhadap belanja pemerintah daerah. Hasil pengujian dengan menggunakan data panel memperoleh hasil bahwa variabel PDRB tidak memiliki pengaruh terhadap penerimaan daerah. Selain itu, variabel inflasi memiliki pengaruh yang negatif dan signifikan terhadap penerimaan daerah. Variabel kurs berpengaruh positif dan signifikan terhadap penerimaan daerah. Akhirnya, variabel penerimaan daerah berpengaruh positif dan signifikan terhadap belanja pemerintah daerah.

scholarly journals THE ROLE OF LOCAL GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH: A REVIEW OF PANEL DATA IN INDONESIA

2019 ◽  
Vol 7 (5) ◽  
pp. 1293-1303
Author(s):  
Agus Tri Basuki ◽  
Yunastiti Purwaningsih ◽  
Mulyanto ◽  
A. M. Susilo
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Cross Section ◽  
Foreign Investment ◽  
Raw Materials ◽  
Government Expenditure ◽  
Local Economy ◽  
Series Data ◽  
Local Government Expenditure

Purpose of the study: This research aims to empirically prove the composition of local government expenditure (education, health, marine and fisheries, agriculture, and general allocation fund) on economic growth in 18 provinces in Indonesia from 2010 to 2015. Methodology: The model used in this research is panel data regression. The use of panel data in regression can provide more information that cannot be provided by cross-section or time-series data, and provides the best solution for inferring dynamic changes than cross-section data. Main Findings: The findings in this study are foreign investment has no influence on economic growth. Fiscal policies that are carried out are not effective in encouraging economic growth, and the use of the General Allocation Fund is not on target. Applications of this study: Foreign investment must be a trigger for the local economy and the national economy by means of foreign investment in Indonesia which is prioritized using raw materials and local labour, so that dependence on imported raw materials can be minimized. To overcome leakage of development budget must implement a budgeting system that is oriented towards organizational output and is very closely related to the organization's vision, mission, and strategic plan. The use of general allocation funds needs to be monitored by certain institutions and prioritizing public interest.

scholarly journals Faktor-Faktor Penentu Belanja Daerah Kabupaten/Kota di Provinsi Papua Barat

2018 ◽  
Vol 1 (1) ◽  
pp. 1-9
Author(s):  
Marcus R. Maspaitella ◽  
Lillyani M. Orisu ◽  
Rahel Y. Tiwery
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Local Governments ◽  
Government Expenditure ◽  
Regional Autonomy ◽  
Panel Data Regression ◽  
Data Regression ◽  
Local Government Expenditure ◽  
Papua Barat

Regional autonomy has provided a rightful authority for local governments to set and manage their own governmental affairs. The implication derived from this regulation is that local governments have to fulfill the regions’ needs as well as to explore much more potentials owned. This can enhance the capacity of local governments that could be a useful capital in financing operational programs. This research aims to analyse the influence of region own source revenue, balance fund, and other lawful local revenues on local government expenditure of regencies and city in Papua Barat province between 2010 and 2015. Sample in this research includes six regencies and one city. Panel data regression was employed to estimate the fitted model. The result indicated that the effects of balance fund and other lawful local revenues were positive and significant, whereas the influence of region own source revenue was not significant on government expenditure of regency/city in Papua Barat.

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 21
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

scholarly journals Pengaruh Kekayaan Sumberdaya Alam Batubara Terhadap Ketimpangan Pendapatan di Provinsi Kalimantan Timur

2018 ◽  
Vol 13 (2) ◽  
pp. 111-130
Author(s):  
Ahmad Zaini
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Income Inequality ◽  
Natural Resources ◽  
Agricultural Sector ◽  
Government Expenditure ◽  
Least Square ◽  
East Kalimantan ◽  
Local Government Expenditure

East Kalimantan Province is the largest producer of natural resources in Indonesia. Due to the massive exploitation process and high value, the mining sector has the biggest contribution and thus dominates the economy sector in the region. Related to this conditions, this study aims to describe the effect the effect of coal as natural resource on income inequality in East Kalimantan Province. This study uses panel data from nine districts/municipalities in East Kalimantan during 2006 until 2014, which is then processed by a pooled least square model. The study concludes that the contribution of coal sub-sectors in the economy is positively related to income inequality. The higher the contribution of coal subsector in the economy, the higher the income inequality in East Kalimantan Province. In addition, this study also finds that local government expenditure is not significantly related to income inequality, which means that the local government has not succeeded in creating equal prosperity in that region. However, the economic growth and the contribution of agricultural sector have no significant effect on income inequality.  Keywords: income inequality, natural resources curse,government expenditure. Provinsi Kalimantan Timur merupakan provinsi penghasil sumber daya alam terbesar di Indonesia. Akibat proses eksploitasi yang massive dan nilai yang tinggi, sektor pertambangan sangat mendominasi perekonomian daerah tersebut. Dari sekian banyak sumber daya alam yang ada di Provinsi Kalimantan Timur, batubara adalah yang paling besar kontribusinya terhadap perekonomian. Terkait kondisi tersebut, penelitian ini bertujuan untuk menguji pengaruh kekayaan sumber daya alambatubara terhadap ketimpangan pendapatan di Provinsi Kalimantan Timur. Penelitian ini menggunakan data panel dari sembilan daerah kabupaten/kota di Provinsi Kalimantan Timur selama tahun 2006-2014, yang kemudian diolah menggunakan model pooled least square. Hasil penelitian menyimpulkan bahwa kontribusi subsektor batubara dalam perekonomian berhubungan positif dengan ketimpangan pendapatan. Semakin tinggi kontribusi subsektor batubara dalam perekonomian, semakin tinggi pula ketimpangan pendapatan di Provinsi Kalimantan Timur. Selain itu dalam penelitian ini ditemukan pula bahwa pengeluaran pemerintah berhubungan positifdengan ketimpangan pendapatan, yang berarti pemerintah daerah belum berhasil menciptakan pemerataan kesejahteraan di wilayahnya. Adapun pertumbuhan ekonomi dan kontribusi sektor pertanian dalam perekonomian Provinsi Kalimantan Timur terbukti tidak memiliki pengaruh yang signifikan terhadap ketimpangan pendapatan.  Kata kunci: ketimpangan pendapatan, kutukan sumber daya alam, pengeluaran pemerintah

scholarly journals The Flypaper Effect Phenomenon: Evidence from Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 21-26
Author(s):  
Ansharullah Tasri
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Provincial Government ◽  
Least Square ◽  
Flypaper Effect ◽  
Decentralization Policy ◽  
Local Government Expenditure

Abstract One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.

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