scholarly journals Financial Performance of Local Government and Social Welfare: The Case in Indonesia.

Author(s):  
Khairudin Khairudin ◽  
Rosmiati Tarmizi ◽  
Indrayenti Indrayenti ◽  
Aminah Aminah ◽  
Kamaruzzaman Muhammad

This study aims to examine the relationship between financial performance and community welfare among the Indonesian local governments. Using content analysis, this study measures the financial performance by utilizing financial ratios such as financial independence, financial effectiveness, financial efficiency, and financial growth whilst community welfare is measured through the Human Development Index (HDI). Based on 146 Indonesian local governments, this study shows that the financial performance and the community welfare in Indonesian local governments are not favorable. This study also shows that financial independence, financial effectiveness and financial efficiency of the local governments are positive significantly affect community welfare. However, financial growth of the local governments has a negative and significant effect on community welfare. This study confirms the stakeholder theory, in which the local governments provide benefits to the stakeholders in the form of community welfare although such benefits has yet to reach the community’s expectations.

Author(s):  
Khairudin Khairudin ◽  
Rosmiati Tarmizi ◽  
Indrayenti Indrayenti ◽  
Aminah Aminah ◽  
Kamaruzzaman Muhammad

This study aims to examine the relationship between financial performance and community welfare among the Indonesian local governments. Using content analysis, this study measures the financial performance by utilizing financial ratios such as financial independence, financial effectiveness, financial efficiency, and financial growth whilst community welfare is measured through the Human Development Index (HDI). Based on 146 Indonesian local governments, this study shows that the financial performance and the community welfare in Indonesian local governments are not favorable. This study also shows that financial independence, financial effectiveness and financial efficiency of the local governments are positive significantly affect community welfare. However, financial growth of the local governments has a negative and significant effect on community welfare. This study confirms the stakeholder theory, in which the local governments provide benefits to the stakeholders in the form of community welfare although such benefits has yet to reach the community’s expectations.


The Winners ◽  
2015 ◽  
Vol 16 (2) ◽  
pp. 152
Author(s):  
Freska Gousario ◽  
Christiana Fara Dharmastuti

This research aimed to know the financial performance of local government through regional financial ratio analysis, i.e. regional financial independence ratios, regional financial effectiveness ratios, regional financial efficiency ratios and regional expenditure harmony ratios,as well as analyzing the impact of regional financial performance against the Human Development Index (HDI).This research was conducted in 20 counties/cities in level I region. Analysis techniques used was multiple linear regression analysis with SPSS Statistics 21. The results shows that: (1) Ratio of regional financial independence contributes positive and significant effect to HDI, (2) Ratio of the regional financial effectiveness contributes no significant effect to HDI, (3) Ratio of regional financial efficiency contributes no significant effect to HDI, and (4) Ratio of regional financial harmony expenditure contributes no positive effect to HDI.


2021 ◽  
Vol 3 (2) ◽  
pp. 190-201
Author(s):  
Hafidzhafauzi Fauzi ◽  
Wahyu Widarjo

Regional autonomy is a policy given by the central government to local governments. The granting of this right to autonomy will encourage the acceleration of economic development in the community. Local governments begin to regulate all affairs in their regions independently so that they will be faster in overcoming all existing problems, including problems of community welfare. The implementation of regional autonomy also gives full rights to regional governments, including in financial management in the regions. Effective, efficient, transparent and responsible financial management is an important basis for improving the community's welfare. Of course, increasing the financial performance of local governments will also increase the human development index. The performance of the local government needs to be assessed as a form of our supervision to the government. This government performance assessment can be measured through the ratio of regional independence, effectiveness and efficiency. In addition, proper management of existing resources in the area will be able to improve the welfare of the community. The purpose of this study is to empirically test the ratio of independence, effectiveness, efficiency to the human development index by controlling regional characteristics in the form of capital expenditures, operational expenditures, government size, regional original income, and population. The amount of data in this study were 29 districts and 6 cities in Central Java during 2015-2019. The results of this study state that the independence ratio, effectiveness ratio, and efficiency ratio can have a significant effect on the human development index. In addition, the control variables for regional characteristics in the form of capital expenditures, operational expenditures, government size, and population are able to influence the human development index. Meanwhile, local revenue has no effect on the human development index.


2020 ◽  
Vol 2 (3) ◽  
pp. 213-225
Author(s):  
Ferry Aryadi ◽  
◽  
Ayi Ahadiat ◽  
Ribhan Ribhan ◽  
◽  
...  

Purpose: The purpose of this research was to determine the significance of differences in financial performance, community welfare, and Gross Regional Domestic Product (GDP) of Bandar Lampung City in two mayor periods. Research Methodology: This study used secondary data obtained directly from the Lampung Provincial Representative Audit Board with a complete-time series of 10 years during the period 2006 – 2015. The research used region government financial performance, society welfare as measured by the human development index, Gross Regional Domestic Product (GDP) Based on Constant Prices as the variable. By one way-ANOVA to analyze technical data on this research. Results: There is no significant difference in the average financial performance in the form of effectiveness ratios, efficiency ratios, expenditure balance ratios, and government financial growth ratios of Bandar Lampung in two major periods. However, this research finds there is a significant difference in the average of social welfare as measured by the Human Development Index (HDI) and Gross Regional Domestic Product (GDP) of Bandar Lampung city in two major periods. This means that the Bandar Lampung City Government has not been able to properly maintain and increase its growth. Limitations: This research took a sample in this study only Bandar Lampung city, while in Lampung province there are 15 regencies/cities, and this research in conducting disparate tests using the Anova test. This research would be better if using more samples and using another test. Contribution: This study contributes to providing input and advice to the city government in making decisions related to the preparation and realization of the Regional Revenue and Expenditure Budget in the future. Keywords: Financial performance, Effectiveness, Efficiency, A harmony of spending, Financial growth


2003 ◽  
Vol 8 (2) ◽  
pp. 97-100 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno

The authors explore an alternative way of analyzing the relationship between human development and individualism. The method is based on the first principal component of Hofstede's individualism index in the Human Development Index rating domain. Results suggest that the general idea that greater wealth brings more individualism is only true for countries with high levels of development, while for middle or low levels of development the inverse is true.


Author(s):  
Frances Stewart ◽  
Gustav Ranis ◽  
Emma Samman

This chapter explores the interactions between economic growth and human development, as measured by the Human Development Index, theoretically and empirically. Drawing on many studies it explores the links in two chains, from economic growth to human development, and from human development to growth. Econometric analysis establishes strong links between economic growth and human development, and intervening variables influencing the strength of the chains. Because of the complementary relationship, putting emphasis on economic growth alone is not a long-term viable strategy, as growth is likely to be impeded by failure on human development. The chapter classifies country performance in four ways: virtuous cycles where both growth and human development are successful; vicious cycles where both are weak; and lopsided ones where the economy is strong but human development is weak, or conversely ones where human development is strong but the economy is weak.


2016 ◽  
Vol 26 (2) ◽  
pp. 211 ◽  
Author(s):  
Lylla Winzer

Because countries with the highest Human Development Index (HDI) have low rates of violence, it is common to assume that the increase of HDI may correspond with lower rates of violence in a country. This study examined the relationship between the Municipal Human Development Index (MHDI) and violent deaths in the Brazilian States between 1991 and 2010. We tested whether the increase of MHDI indirectly reduces violence or whether the reduction of violence predicts higher MHDI in later years. The raw data were obtained from three sources online, Atlasbrasil, IPEAdata and Map of violence. The analyses do not support the assumption that the increase of MHDI leads to a reduced level of violence. However, there are indications that the decrease of homicides over the years results in improved MHDI rates in 2010. The results suggest that taking measures aimed at development does not automatically imply a lower level of violence, but fi ghting against violence may increase MHDI.


2003 ◽  
Vol 31 (1) ◽  
pp. 55-59 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno

The authors explore an alternative way of analyzing the relationship between development, migration and psychology. The method is based on the first principal component of national net immigrants'data in the Human Development Index rating domain. Results show that the main sources of emigrants are countries with moderate development and the main sink countries are ranked from Human Development Index Rating 10 to 30. This could be in part due to a psychological reason: “If one is poor among poor, incentives to migrate might be lower than if one is poor among (relatively) rich”.


2016 ◽  
Vol 2 (2) ◽  
pp. 251
Author(s):  
Sabah Faihan Mahmood ◽  
Yassen Taha Mahmood

      Human Development aims to   enlarge choices in front of people by improving the level of health, education, and income; this means that this process will upgrade both the economic and social development.In other words, human development aimes to raise the average of age and this requires the advancement of the health aspect, raise the level of knowledge and this requires the advancement of  the educational aspect of all kinds., and raise the standard of living, and this requires the advancement of the economic aspect by providing the necessary jobs and promote economic activities.      The study focus on the relationship between education and human development which has great importance as a mean to determine the impact of education on human development. The research seeks to achieve a set of objectives, including:        Review  the concept of human development and its basic elements, shed light on the reality of development in Iraq and follow the path of its development, and find out the role of education in influencing human development through the changes taking place in it and its impact on increase or decrease  human development index during the period of the research.       The research found set of   results, the most important were the important effect of the education index on the level of human development index represented by HDI.  Iraq had a good educational system in the eighties and nineties, reaching good education index value for the year (1990) which was (0.890), making the human development index in Iraq in the highest level and the value of the Human Development Index (0.759) in the first report issued by the United Nations in the year (1990). when the education index fall back there was negatively impact on the value of human development  index in Iraq Directory, so when the education index value became (0.721) , the value of the Human Development Index  was  (0.590) in the year 2011 . This means that the value of the human development index decrease in recent years, although of improvement in the level of health, and the average per capita GDP in Iraq, and this illustrates the significant role of education on the human development process.


Author(s):  
Bonifasia Elita Bharanti

The structure of Regional Development Budget (hereafter APBD) of Papua Province, which is mostly sourced from  Government transfers tends to increase every year. This requires prioritising the use of capital expenditure that can improve the welfare of the community. However, it is an irony that the poverty rate in Papua Province ranks first in Indonesia as indicated by the Human Development Index (HDI), below the national average HDI. The objective  to analyse the structure of the APBD (General Allocation Fund - hereafter DAU, Special Allocation Fund - hereafter DAK and Revenue Sharing Fund - hereafter DBH) and financial performance of Papua's Human Development Index in 2013-2018 with capital expenditure as an intervening variable. Quantitative approach is used with secondary data type, which is processed using the IBM SPSS Amos application.  This study indicate that the increasing APBD structure will be able to increase the HDI but capital expenditure does not mediate the APBD structure to the HDI. Furthermore, financial performance has no impact on increasing the HDI as the capital expenditure does not mediate financial performance on the human development index.


Sign in / Sign up

Export Citation Format

Share Document