Flypaper Effect On The Relationship Of General Allocation Fund, Revenue Sharing Fund, And Regional Own Revenue To Infrastructure Expenditure In Regency/Municipality of South Sumatera Province Period 2008-2011

Dewa, Saputra and Mukhtaruddin, Maukhtaruddin and Anastasia, Pratiwi and Hasni , Yusrianti (2013) Flypaper Effect On The Relationship Of General Allocation Fund, Revenue Sharing Fund, And Regional Own Revenue To Infrastructure Expenditure In Regency/Municipality of South Sumatera Province Period 2008-2011. In: World Business Institute Australia, Paris, 4-5 July 2013, Paris, Perancis.

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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 flypaperseffect as one of indicators to see the effectiveness of regional autonomy. It analyzed about howlocal governmentsallocate the available resources in terms of revenue that sourced from grant proxied by GAF and RSF or its own income especially for public needs. This research used data sample of regional budget realization report of9 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 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. Keywords:GAF, RSF, ROR, Infrastructure Expenditure, and Flypaper Effect

    Item Type: Conference or Workshop Item (Paper)
    Subjects: H Social Sciences > HC Economic History and Conditions
    Divisions: Faculty of Economics > Department of Accounting
    Depositing User: Mrs Hasni Yusrianti
    Date Deposited: 06 Apr 2014 21:27
    Last Modified: 06 Apr 2014 21:27
    URI: http://eprints.unsri.ac.id/id/eprint/4044

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