Regional Revenue And Infrastructure Expenditure: Is There A Flypaper Practices?

Mukhtaruddin, Mukhtaruddin and Anastasia, Pratiwi and Hasni , Yusrianti (2013) Regional Revenue And Infrastructure Expenditure: Is There A Flypaper Practices? Proceedings of Asian Pacific Conference on International Accounting Issues.

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    Abstract

    The main objective of regional autonomy is to empower regions in order to be more independent financially. However, some researches indicate that local governments still strongly depend on central government assistance through grant. This research examined flypapers effect as one of indicators to see the effectiveness of regional autonomy. It analyzed about how local governments allocate the available resources in terms of revenue that sourced from grant proxied by General Allocation Fund (GAF) and Revenue Sharing Fund (RSF) or its own income especially for public needs. This research used data sample of regional budget realization report of 9 regencies and 4 municipalities in South Sumatera province period 2008 until 2011. Analysis tool that was used in this research is multiple linear regressions. The research result shows that GAF, RSF, and Regional Owned Revenue (ROR) have significant influence on infrastructure expenditure partially and simultaneously. Positive coefficient value of GAF and RSF is greater than the coefficient value of ROR which is negative. It implies that effect of grants is greater than the effect of ROR on infrastructure expenditure. This result suggests there has been a Flypaper Effect on local government's response of infrastructure expenditure. Local government’s behavior in setting infrastructure expenditure policy is more stimulated by the amount of grant received in the current year than its regional own revenue. Grant encourages local governments use the transfer for increasing their expenditures.

    Item Type: Article
    Uncontrolled Keywords: GAF, RSF, ROR, Infrastructure Expenditure, and Flypaper Effect
    Subjects: H Social Sciences > HG Finance
    Divisions: Faculty of Economics > Department of Accounting
    Depositing User: Mukhtaruddin Mukhtaruddin
    Date Deposited: 08 Dec 2013 00:54
    Last Modified: 08 Dec 2013 00:54
    URI: http://eprints.unsri.ac.id/id/eprint/3176

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