Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 12, No 2 (2020)

Implication of Regional Split in Local Government Efficiency: Evidence From North Sumatra, Indonesia

Roosemarina Anggraini Rambe (Universitas Bengkulu)



Article Info

Publish Date
28 Oct 2020

Abstract

The purposes of this study are to (1) measure the level of the relative efficiency of educational spending in achieving the years of schooling at local governments in North Sumatra Province, (2) Compare the relative efficiency level of per capita educational spending between the parent local government and the local governments resulting from the split. The analytical method used is Data Envelopment Analysis with an output-oriented model. The approach used is a variable return to scale. In measuring efficiency, the input used is educational spending per capita, while the output used is the years of schooling. The results showed that the average level of the relative efficiency of 33 local governments in North Sumatra decreased from 2015 to 2018. In 2015, there were three relatively efficient local governments: Medan, Pematang Siantar, and Labuhan Batu. However, in 2018, only Medan is relatively efficient. The efficiency level of Labuhan Batu declined in 2018. In fact, all parent local governments and local governments resulting from split experienced a decrease inefficiency. Thus, a regional split has not succeeded in increasing the relative efficiency of local governments in North Sumatra Province.

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Journal Info

Abbrev

JESP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...