Expenditure Analysis of Local Government and Regional Economic Development District/City of Ten Province in Sumatra Island Indonesia

Susetyo, Didik (2017) Expenditure Analysis of Local Government and Regional Economic Development District/City of Ten Province in Sumatra Island Indonesia. International Journal of Applied Business and Economic Research, 15 (3). pp. 17-42. ISSN 0972-7302

	Text 2017 (03) DidikSusetyo et al IJABER Vol.15 No.3 2017 pp.17-42 www.serialsjournal.com.pdf Download (2MB)
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Abstract

The research problem is how to influence the local government spending, the number of local civil servants (PNSD), and the number of regional infrastructure to the local economic development districts/ cities in Sumatra island of Indonesia. While the purpose of the study is to estimate the model and analyze the influence of local government spending, the number of the civil servants, and the amount of infrastructure to the local economic development districts/cities in Sumatra island of Indonesia.Regional economic theory used is Keynesian model: Y = C + I + G + (X – M); A concept of Local Government Expenditure (local government spending) according to Wagner’s Law, Theory Peacock and Wiseman, Wagner, and Solow. While previous empirical research, among others is: (a) Susetyo (2003) and (b) Yanizar (2012). Research methods include: (a) the scope of the studies in this research is local government spending, the number of local officials (PNSD), local infrastructure (road length), and the regional gross domestic product (local economic). The location of observation as the unit of analysis is the district/city as much as 155 (comprising 121 districts and 34 cities) on the island of Sumatra, Indonesia; (b) The data type and data source, that the type of data used are secondary data and are equipped with primary data analysis uni; (c) The method of analysis in this research is quantitative descriptive and equipped with qualitative descriptive. The results of the research will be grouped into two categories: the results of descriptive analysis and quantitative analysis in the form of model parameter estimation data panel. The resulting model can be tested to get a good model, precise and consistent is by Chow and Hausman Test. Theoretically could have that amount of time series data is smaller than the district/city as a cross section preferably using random effect models is: Y = –2493,4550 + 5,7371X1 + 1,9784X2 – 1,2106X3 + e 1 ; where, Y = Gross Regional Domestic Product; X1 = Regional expenditure (local spending); X2 = Number of local civil servants; X3 = Length of road; e 1 = error term.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory > HB71-74 Economics as a science. Relation to other subjects
Divisions:	01-Faculty of Economics > 60001-Economics (S3)
Depositing User:	Prof. Dr. Didik Susetyo, SE., MSi
Date Deposited:	09 May 2023 14:09
Last Modified:	09 May 2023 14:09
URI:	http://repository.unsri.ac.id/id/eprint/98735

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