Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah
Vol. 11 No. 2 (2026): Islamic Banking:Jurnal Pemikiran dan Pengembangan Perbankan Syariah - Februari

The Effect of Local Original Revenue And Transfer Funds On Regional Expenditure In Ogan Ilir District: A Flypaper Effect Analysis (2015-2024)

Hatita Korpriana Laconi (AKPD Ahli Muda Badan Pengelolaan Keuangan Dan Aset Daerah (BPKAD) Kabupaten Ogan Ilir)
Fauzia Afriyani (Fakultas Ekonomi Universitas Indo Global Mandiri)
Abdul Kholik (Fakultas Ilmu Komputer dan Sains Universitas Indo Global Mandiri)



Article Info

Publish Date
10 Feb 2026

Abstract

This study aims to analyze the influence of Local Genuine Revenue (PAD) and Transfer Funds on Regional Expenditure in Ogan Ilir Regency, as well as to identify the existence of the Flypaper Effect phenomenon during the 2015-2024 period. Using a quantitative method with a causal associative approach, this research utilizes secondary time-series data from annual Budget Realization Reports (LRA). The results of the multiple linear regression analysis show that PAD has a positive and significant effect on Regional Expenditure, with a regression coefficient of 5.766 and a significance value of 0.047. On the other hand, Transfer Funds partially do not have a significant effect on Regional Expenditure, with a significance value of 0.191. The primary finding of this study indicates that the Flypaper Effect phenomenon does not occur in Ogan Ilir Regency, as the PAD coefficient (5.766) is substantially larger than the Transfer Funds coefficient (0.836). This suggests that the local government is more responsive to increases in internal revenue than to central transfers when determining expenditure policies, reflecting efforts toward fiscal independence and rational financial management without falling into fiscal illusion.

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Journal Info

Abbrev

isbank

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah is an open access peer-reviewed online journal that provides a forum for sharing scientific studies on Islamic economics and banking. Editors welcome articles and research reports that address current issues such as: sharia ...