The role of coalition parties and local government expenditure: Evidence from the developing country

2021 ◽  
Vol 5 (2) ◽  
pp. 82-89
Author(s):  
Harumi Puspa Rizky ◽  
Doddy Setiawan ◽  
Jaka Winarna

This study aims at examining the role of coalition parties on local government expenditure. The coalition parties are comprised of several parties that support the regional head in the local government. Specifically, this study focuses on two important aspects of local government expenditure: education and health expenditure. The research question of the study is “Does the coalition parties have a significant effect on the local government expenditure?”. The independent variable of the study is coalition parties that support elected regional heads. The dependent variable is local government expenditure, which consists of education and health expenditures. The sample of the study was the local government in the Republic of Indonesia from the 2016–2018 period. There are 632 observations as the sample of the study. The results revealed that coalition parties have a negative effect on education and health expenditure. The higher percentage of coalition parties has decreased the local government expenditure on both education and health expenditures. The result of the study shows that coalition parties have a significant effect on the local government expenditure. This study confirms Lewis and Hendrawan’s (2019) argument that coalition parties have used their discretion to influence the regional heads’ decisions on the local government expenditure

2017 ◽  
Vol 13 (8) ◽  
pp. 91
Author(s):  
Achmad Solihin ◽  
Djoko Mursinto ◽  
Lilik Sugiharti

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.


2021 ◽  
Vol 3 (2) ◽  
pp. 47
Author(s):  
Alno Sardi Putra ◽  
Ali Anis

This study has three main objectives, namely, first to find out how the causal relationship between local government revenue and local government expenditure in provinces in Indonesia, the second objective is to find out how the causal relationship between local government expenditure and GRDP in provinces in Indonesia. Meanwhile, the third objective is to determine the causal relationship between local government revenue and GRDP in provinces in Indonesia. In this study, the objects in this study are 33 provinces throughout Indonesia. The data used are from 2010 to 2019. The data used are secondary data obtained from the Central Statistics Agency (BPS). The analytical method used is the VAR (Vector Auto Regression) time series analysis and the cluasaility granger test. which is processed using the help of Eviews. Based on the results of hypothesis testing, it shows that: (1) There is no causal relationship between local government revenue and local government expenditure in 33 provinces in Indonesia, but what is formed is a one-way relationship between government revenue and local government expenditure in 33 Indonesian provinces. In the hypothesis testing stage (2) there is no causal relationship between local government spending and GRDP in 33 provinces in Indonesia, in the analysis stage there is no one-way or two-way relationship between government spending and GRDP. Thus the hypothesis is rejected, while the results of hypothesis testing (3) There is no causal relationship between local government revenue and GRDP in 33 provinces in Indonesia. In the analysis stage, there is no one-way or two-way relationship between each variable. Thus the third hypothesis is rejected.


Author(s):  
Priyastiwi Priyastiwi ◽  
Nunung Saputra

The purpose of this research is to analyze the effect of local government financial performance and their characteristic on the degree of their voluntary reporting of financial statements on the internet. Local government financial performance are measured by intergovernmental revenue, local government expenditure, local government assets, and leverage. While the local government characteristic is income per capita. The samples are financial statement of local government in DIY and Central Java. A total of 40 financial statements are 5 from financial statements form DIY and 35 financial statements form Central Java. The research analysis used multiple regression analysis. The results of this study show the performance financial are intergovernmental revenue, local government expenditure, local government assets have significant positive effect on degree of their voluntary reporting of financial information on the internet, while leverage have significant negative effect. On the otherhand income per capita has no effect on degree of their voluntary reporting of financial information on the internet.


Sign in / Sign up

Export Citation Format

Share Document