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

Mukhtaruddin, Mukhtaruddin and Anatasia , Pratiwi and Hasni , Yusrianti Regional Revenue And Infrastructure Expenditure: Is There A Flypaper Practices? FE Ekonomi Lambung Mangkurat, Banjarrmasin, Indonesia, pp. 265-287.

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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 fentral government assistance through grant. This research examined flypaperseffect as one of indicators to see the effectiveness of regional autonomy. It analyzed about howlocal governments allocate the available resources in terms of revenue that sourced from grantproxied by'General Allocation Fund (GAF) and Revenue Sharing Fund (RSF) otus 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 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 trl£lnits regioTl£l1own revenue. Grant encourages local governments use the transfer for increasing their expenditures.

    Item Type: Book
    Uncontrolled Keywords: GAF, RSF, ROR, Infrastructure Expenditure, and Flypaper Effect
    Subjects: H Social Sciences > HC Economic History and Conditions
    Divisions: Faculty of Economics > Department of Accounting
    Depositing User: Mrs Hasni Yusrianti
    Date Deposited: 09 Apr 2014 20:58
    Last Modified: 09 Apr 2014 20:58
    URI: http://eprints.unsri.ac.id/id/eprint/4166

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