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Go Back       Himalayan Journal of Economics and Business Management | Volume:4 Issue:3 | June 15, 2023
125 Downloads264 Views

DOI : 10.47310/Hjebm.2023.v04i03.027       Download PDF       HTML       XML

Flypaper Effect: The Politics of Government Spending in Indonesia's Land Border Regions

Maria Christiana Iman Kalis1, M Irfani Hendri2, Hengky Irawan3

1,2Fakultas EconomicdanBisnisUniversitasTanjungpura, Pontianak, Indonesia

3Mahasiswa DoktorIlmuManajemen FEB UniversitasTanjungpura, Pontianak, Indonesia

*Corresponding Author

Maria Christiana Iman Kalis

Article History

Received: 30.05.2023

Accepted: 10.06.2023

Published: 15.06.2023

Abstract: This study aims to determine the extent to which grants and local own-source revenues affect HDI-forming expenditures and to what extent legislative representatives in land border regions in Indonesia moderate grants and PAD on these expenditures. This study uses secondary data on 20 land border regions in Indonesia with a span of 7 years (2014-2016). Using the panel data analysis method, the results reveal that, simultaneously, grants and own-source revenues affect education, economic, and health expenditures. Legislative representation can moderate the General Allocation Fund and locally generated revenue on economic spending, but not on education and health spending. In general, the moderating effect can degrade the flypaper effect, but not the general allocation fund on health expenditure.

Keywords: Revenue Sharing Fund, General Allocation Fund, Special Allocation Fund, local own revenue, Legislative, Flypaper effect.

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