Does the Flypaper Effect Phenomenon Occur on the Financial Performance of Provincial Governments in Indonesia?
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 12
Abstract
The purpose of this research is to detect the flypaper effect phenomenon on the financial performance of provincial governments in Indonesia. This research uses one dependent variable, namely regional expenditure and two independent variables, namely the General Allocation Fund (GAF) and local own-source revenue (OSR). The data used in this research is secondary data in the form of panel data consisting of time series data (2018-2022) cross section with the number of observations as many as 33 provinces. Then, this research data was collected from the Directorate General of Financial Balance, Ministry of Finance of the Republic of Indonesia and other supporting reports. This research was analyzed using panel data regression analysis. Based on the results of panel data regression, results were obtained Based on the results of panel data regression, results were obtained that partially each variable local own-source revenue (OSR), The General Allocation Fund (GAF) has a positive and significant impact on the regional level of exploration in Indonesia. Meanwhile, simultaneously local own-source revenue (OSR), General Allocation Fund (GAF) has a positive and significant impact on regional expenditure in Indonesia with an Adjusted R-squared amount of 97.07 percent. Then, if you look at the flypaper effect phenomenon, it can be concluded that there is a flypaper effect on the financial performance of provincial governments in Indonesia. Based on the results of this study, each provincial government in Indonesia should increase Local Own-Source Revenue (OSR) to be used as the main source of regional expenditure, then local governments should also prioritize the use of regional expenditure for productive things, so that the existence of central government transfer funds can increase the independence of government financial performance and ultimately can minimize dependence on the central government.
Authors and Affiliations
Septriani Septriani
Keywords
Related Articles
- EP ID EP729675
- DOI 10.47191/jefms/v6-i12-41
- Views 27
- Downloads 0
The Influence of Personality and Job Embeddedness on Organizational Citizenship Behavior (OCB) in the Management of the West Nusa Tenggara Provincial Zakat Agency (Baznas NTB)
OCB is a form of behavior that is an individual choice and initiative, which is not related to the organization's formal reward system but rather in aggregate increases organizational effectiveness. The aim of this study...
Retrospection of the Manufacturing Sector’s Growth in Uttarakhand
The Manufacturing sector is an essential sector for developing economies as well as developed economies. It contributes to every aspect of the economy regarding its contribution to gross domestic product and employment g...
Dynamics of Rice Imports in Indonesia: Analysis of Development, Causative Factors, Impacts and Solutions
This research aims to understand the development of rice imports, the factors driving rice imports, the impact of rice imports, and steps to increase production and reduce rice imports in Indonesia. This research uses a...
Urban Consumers: Reasons, Expectations and Benefits for the Purchase of Vegetables, Fish on Itinerant Greengrocer (Case Study in Perumahan Kota Baru Driyorejo, Gresik)
The number of traveling vegetable vendors around community housing close to modern markets or traditional markets affects consumer behavior. The purpose of this study is to analyze the characteristics, reasons for expect...
The Effect of Risk Perception on Purchase Decisions using Shopee Pay Later with Consumptive Behavior as Moderation
This research was conducted to determine the effect of risk perception on purchasing decisions using shopee pay later with consumptive behaviour as moderation. This type of research is quantitative research with an expla...