THE IMPACTOf FLYPAPER EFFECT AND GROSS REGIONAL DOMESTIC PRODUCT TOWARD REGIONAL EXPENDITURE

Bambang, Jatmiko and Nano, Prawoto and Rini, Juni Astuti and Woro, Tyas Pradipta and Tri, Indah Mulyani (2018) THE IMPACTOf FLYPAPER EFFECT AND GROSS REGIONAL DOMESTIC PRODUCT TOWARD REGIONAL EXPENDITURE. Proceeding International Conference of Business, Accounting and Economy (ICBAE UMP 2018).

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Abstract

The purpose of this study is: a) to test and prove empirically General Allocation Fund (GAF)have a positive effect on regional expenditure in provinces in Indonesia, b) to test and prove empirically Special Allocation Fund(SAF) have a positive effect on regional expenditure in provinces in Indonesia, c) to test and prove empirically Revenue Sharing Fund(RSF) have a positive effect on regional expenditure in provinces in Indonesia, d) to test and prove empirically Locally-Generated Revenue(LGR) have a positive effect on regional expenditure in provinces in Indonesia, e) to test and prove empirically Gross Regional Domestic Product(GRDP) have a positive effect on regional expenditure in provinces in Indonesia, f) to test and prove empirically happen Flypaper Effect in provinces in Indonesia. The research method in this study is descriptive method that aims to make the description systematically, factually, and accuratelly towards fact. The population in this study is the provinces in Indonesia until 2016. The result showed that The General Allocation Fund and Gross Regional Domestic Product have not effectto regional expenditure in province in Indonesia. The Special Allocation Fund, Revenue Sharing Fund, Locally-Generated Revenuehave a positive effect on regional expenditure in province in Indonesia. Judging from value of adjusted R Square balance funds (General Allocation Fund, Special Allocation Fund, Revenue Sharing Fund) is smaller than adjusted RSquare Locally-Generated Revenue. It was concluded that there was no Flypaper Effect in the province of Indonesia within the periode of 2014-2016.

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