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Research Article | Volume 4 Issue 3 (Issue May, 2023)
Flypaper Effect: The Politics of Government Spending in Indonesia's Land Border Regions
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 ,
Under a Creative Commons license
Open Access
Published
June 15, 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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