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 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 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.

scholarly journals Granger Causality Between Local Government Expenditure and Economic Growth in Indonesia

2018 ◽  
Vol 3 (4) ◽  
pp. 80-86
Author(s):  
Sri Kurniawati
Keyword(s):  
Economic Growth ◽  
Local Government ◽  
Granger Causality ◽  
Government Expenditure ◽  
Granger Causality Test ◽  
Reciprocal Relationship ◽  
Series Data ◽  
Causality Test ◽  
West Kalimantan ◽  
Integration Test

Objective - This study examines the causal relationship between government expenditure and economic growth in West Kalimantan between 2009 and 2015. This research resulted in the enactment of Wagner's Law and/or Keynes's Theory in West Kalimantan leading the local government to take the right policies as an effort towards improving economic development. Methodology/Technique - By using panel data that combines time series data and cross-site data, it will be estimated by the Granger causality test which begins with a stationary test and co-integration test. Based on the co-integration tests, the results suggest that there is a long-term relationship between government expenditure and economic growth. Meanwhile, based on the Granger causality test, there is no reciprocal relationship between government expenditure and economic growth. Findings - A direct relationship in the form of the influence of government expenditure on economic growth in West Kalimantan. Novelty - These results are in line with the Keynes's Theory through its national income function. Type of Paper: Empirical Keywords: Government Expenditure; Economic Growth; Co-integration; Causality. JEL Classification: F40, F43, F49.

scholarly journals The Determinants of Level of Society Welfare Within Fiscal Decentralization Framework In Regional Autonomy Era

2020 ◽  
Vol 21 (2) ◽  
pp. 60-70
Author(s):  
Nuwun Priyono ◽  
Siti Arifah ◽  
Eva Wulandari ◽  
Panji Kusuma Prasetyanto
Keyword(s):  
Local Government ◽  
Time Series Data ◽  
Fiscal Decentralization ◽  
Government Expenditure ◽  
Balance Sheet ◽  
Significance Test ◽  
Profit Sharing ◽  
Series Data ◽  
Central Java ◽  
Local Government Expenditure

The purpose of this study is to prove to what extent the influence that fiscal decentralization, local financial performance, local government expenditure, Locally Generated Recurring Revenues or Pendapatan Asli Daerah (PAD), Profit-Sharing Fund or Dana Bagi Hasil (DBH), General Allocation Fund or Dana Alokasi Umum (DAU), and Special Allocation Fund or Dana Alokasi Khusus (DAK) have on the level of society welfare. The objects of this research are Regencies and Municipalities in Java Island. The data used in this study are the secondary. The data on balance sheet and realization report of the regional revenues and expenditure budget (APBD) are from the Ministry of Finance of the Republic of Indonesia. The data on the level of society welfare that is proxyed by the value of HDI is obtained from Bappenas and BPS of Central Java. This research uses time series data from 2012-2014 periods. The research method used is the research of causality with linear regression model. The result of the significance test shows that only one DAK variable can partially affect the HDI variable. Meanwhile those variables other than DAK partially or individually do not influence the HDI variable. The result of regression analysis shows that simultaneously such variables as Fiscal Decentralization, Regional Finance Performance, Local Government Expenditure, PAD, DAU, DAK and DBH have an influence on HDI in Regencies / Municipalities in Java Island.

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 ANALISIS DETERMINAN KEMISKINAN DI SULAWESI SELATAN (DETERMINANT ANALYSIS OF POVERTY IN SOUTH SULAWESI)

2016 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Azwar Iskandar ◽  
Achmat Subekan
Keyword(s):  
Economic Growth ◽  
Local Government ◽  
Random Effect ◽  
Government Expenditure ◽  
Participation Rate ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
South Sulawesi ◽  
School Participation ◽  
Local Government Expenditure

ABSTRAKPenelitian ini bertujuan untuk mengetahui determinan atau faktor-faktor yang mempengaruhi kemiskinan di Provinsi Sulawesi Selatan periode tahun 2010 sampai 2014. Data yang digunakan dalam penelitian ini berupa data sekunder dari publikasi data statistik Badan Pusat Statistik (BPS) Provinsi Sulawesi Selatan dan Direktorat Jenderal Perimbangan Keuangan (DJPK) Kementerian Keuangan Republik Indonesia. Data-data tersebut ditabulasikan ke dalam struktur data panel yaitu gabungan antara data yang berbentuk time series dan cross section dalam bentuk tahunan. Dengan teknik purposive sampling, penelitian ini menggunakan data 24 kabupaten/kota di Provinsi Sulawesi Selatan untuk kemudian dianalisis dengan metode teknik Analisis Regresi Data Panel dengan pendekatan Random Effect. Hasil empiris membuktikan bahwa seluruh variabel determinan yang terdiri dari pertumbuhan ekonomi regional, jumlah pengangguran, indeks kesehatan, angka partisipasi sekolah dan belanja daerah secara simultan berpengaruh signifikan terhadap jumlah kemiskinan di Provinsi Sulawesi Selatan. Sementara secara parsial, variabel pertumbuhan ekonomi regional berpengaruh positif dan tidak signifikan terhadap kemiskinan, sedangkan variabel-variabel lainnya yaitu pengangguran, indeks kesehatan, angka partisipasi sekolah dan belanja daerah berpengaruh negatif terhadap kemiskinan. Oleh karena itu, pemerintah kabupaten/kota di Provinsi Sulawesi Selatan diharapkan mampu menciptakan pertumbuhan ekonomi yang berkualitas dan bersifat inklusif, mampu meningkatkan fasilitas pendidikan dan fasilitas kesehatan secara merata tidak hanya terpusat pada satu daerah saja, serta meningkatkan pengawasan keuangan terkait pengeluaran atau belanja pemerintah kabupaten/kota agar tepat sasaran sehingga pengeluaran atau belanja pemerintah dapat terus berjalan efektif dan efisien dalam upaya pengurangan kemiskinan.Kata Kunci: kemiskinan, Sulawesi Selatan, data panel ABSTRACTThis research is aimed to analyze the determinant of poverty in South Sulawesi on 2010-2014 period. Using the annual data from Badan Pusat Statistik (BPS) and Direktorat Jenderal Perimbangan Keuangan (DJPK), the estimation applies the Panel Regression with Random Effect Model (REM) as analytical tool inorder to analyze the effect of regional economic growth, unemployment, healthy index, school participation rate and local government expenditure on poverty in South Sulawesi. The empirical results show that all determinant variables simultanously have a positive significant effect on poverty. Meanwhile, regional economic growth partially have a positive effect on poverty. The others such as unemployment, healthy index, school participation rate and local government expenditure partially have a negative effect on  poverty. Because of that matters, local government shall to create an economic growth inclusively, improve the health and education public infrastructures, and increase the supervision of expenditures tokeep going effective and efficient in the poverty reduction effort.Keywords: poverty, South Sulawesi, panel data

An Investigation into the Intertemporal Spending Path of Local Government in Mauritius

2020 ◽  
Vol 14 (4) ◽  
pp. 432-453
Author(s):  
Sanju Naraidoo ◽  
Sanjeev K. Sobhee
Keyword(s):  
Local Government ◽  
Intertemporal Choice ◽  
Time Series Data ◽  
Government Expenditure ◽  
Jel Classification ◽  
Series Data ◽  
Middle Income ◽  
Long Run ◽  
Short Run ◽  
Local Government Expenditure

This article examines whether local government expenditure in Mauritius is characterised by an intertemporal decision-making path. In other words, to what extent does local government expenditure respond to contemporaneous changes in revenues. In this respect, the article contributes to the existing body of literature by exploring the context of an upper-middle-income country like Mauritius while factoring intertemporal choice in the supply of local public goods. Moreover, the article determines the short-run and long-run responsiveness of local public expenditure to Gross Domestic Product (GDP) through an error correction model based on time series data for Mauritius over the period 1987–2017. Our findings indicate that local government spending becomes less sensitive to its previous values when GDP and its past values are introduced as control variables in the model. Local government expenditure and real output are also found to be co-integrated or to share a long-term relationship. JEL Classification: B22, C1, D9, H4, H11

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