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Kausalitas antara Penerimaan, Belanja, dan PDRB pada Kota dan Kabupaten di Indonesia

Economic Journal of Emerging Markets

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Title Kausalitas antara Penerimaan, Belanja, dan PDRB pada Kota dan Kabupaten di Indonesia
 
Creator Kuncoro, Haryo
 
Description Causality is an important concept in applied econometrics. It helps us to identify the direction which variable is a cause (policy) and which one is an impact. This paper applied the technique of Granger causality to determine the causal relationship between total government expenditures, total tax revenues, and regional income in the case of regencies’/ rmunicipalities’ local government in Indonesia over the period of 1988-2003.Unlike other researchers, this study breaks down the total local government expenditures into operating and capital expenditures. Similarly, the total local government revenues are specified further into local own revenues and intergovernmental transfers (tax & non tax revenue sharing and grant). Using annual panel data, the analysis discovers a firm bidirectional effect from expenditure to revenue. Meanwhile, we found a unidirectional between regional income and grant. It suggests that the preference of controlling either the spending or revenue decisions is conducted both central and local governments to synchronize fiscal performance. Policy implication that could be drawn is that local governments may increase regional economic performance without depending on grants from central government.Keywords: local government, revenue, expenditure and causality
 
Publisher Universitas Islam Indonesia
 
Contributor
 
Date 2009-05-07
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.uii.ac.id/index.php/JEP/article/view/376
 
Source Economic Journal of Emerging Markets; Volume 12 Issue 3, 2007
2502-180X
2086-3128
 
Language eng
 
Relation http://journal.uii.ac.id/index.php/JEP/article/view/376/292