ANALISIS FLYPAPER EFFECT PADA PAD DAN DAU TERHADAP BELANJA DAERAH KABUPATEN/KOTA DI KIB DAN KIT

Trisyanti, Dela Irbah
Putu Mahardika Adi Saputra

Contemporary Studies in Economic, Finance and Banking (CSEFB)
Vol. 1 No. 4 (2022)

This study aims to determine whether there is the flypaper in the western region of Indonesia and eastern region of Indonesia. This study uses a quantitative approach with Fixed effect model (FEM) as its method. This study uses secondary data that obtained through DJPK Ministry of Finance’s website to get Local Own-source Revenue (LOR), General Allocation Fund (GAF), Regional Expenditure and Central Bureau of Statistics to get population that used as control variable during the 2010-2020 period. The result of this study indicate that LOR, GAF, and population has a positive effects on regional expenditures. The flypaper effect also occurs in the western region of Indonesia and eastern region of Indonesia