Flypaper Effect of General Allocation Fund (DAU) And Human Development Index (IPM) (A Case Study In Regencies and Municipality In Bali)
DOI:
https://doi.org/10.14738/abr.55.3084Abstract
The main objective of this research is to show the relationship between General Allocation Fund (DAU), Own-Source Revenue (PAD), Capital Expenditure, Economic Growth, Human Development Index (IPM), and Income per Capita of regencies/municipality in Bali. The other objective is to provide empirical evidence on the occurrence of flypaper effect in DAU and PAD on Capital Expenditure. Data is taken from audited local budget and revenue report and from Bureau of Statistic (Badan Pusat Statistik-BPS) Bali Province. Result of analysis indicates that the variable of DAU and PAD is positively related to Capital Expenditure, Capital Expenditure is positively related to Economic Growth, Capital Expenditure is negatively related to Income Per Capita, and Capital Expenditure is positively related to Human Development Index. DAU and PAD are separately influenced Capital Expenditure, but the coefficient of PAD is greater than DAU. It indicates that there is no flypaper effects occurred on Capital Expenditure. Flypaper effect is defined as local response (expenditure) that is greater than transfer. The results still require confirmation through future researches.
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Causality Relationship Between Variables DAU, PAD, BM, Local Economic Growth, Income Per Capita, and IPM Standardized estimates CMIN=0,42 DF=1 PROBABILITY=0,52 CMIN/DF=0,42 GFI=1,00 AGFI=,98 TLI=1,00 CFI=1,00 RMSEA=,00 Model Measurement Structure Unstandardized and Standardized Regression Weight Unstanda Standar Explainati rdized dized S.E. C.R. P on Estimate Estimate BM <--- DAU ,13 ,16 ,04 3,63 *** Sig BM <--- PAD ,25 ,79 ,02 13,1 *** Sig PED <--- BM ,00 ,87 ,00 6,92 *** Sig PPK <--- BM ,00 -,06 ,00 - ,29 non Sig. 1,06 IPM <--- BM ,00 ,64 ,00 4,99 *** Sig Tabel Goodness of Fit Goodness of Fit Cut of Value Hasil Model Keterangan index Diharapkan Chi Square kecil 0,42 good Relative Chi Square ≤ 3,00 0,42 good Probability > 0,05 0,52 good RMSEA ≤ 0,08 0,00 good GFI ≥ 0,90 1,00 good AGFI ≥ 0,90 0,98 good CFI ≥ 0,95 1,00 good TLI ≥ 0,95 1,00 good
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