Do Village Funds and Tobacco Excise Revenue Sharing Improve Human Development?

Widhiya Syamsyifa (Faculty of Economics and Business, Universitas Negeri Semarang)
Sri Runtiningsih (Faculty of Economics and Business, Universitas Negeri Semarang)

Signifikan : Jurnal Ilmu Ekonomi
Vol. 15 No. 2 (2026)

Research Originality: This study contributes to the literature by examining the effects of Village Funds and Tobacco Excise Revenue Sharing Funds on human development in Central Java and underscores the lack of studies that assess these effects using individual HDI indicators as robustness measures. Research Objectives: This study aims to analyze whether fiscal transfers significantly improve HDI in Central Java. Research Methods: This study uses panel data from 35 districts/cities in Central Java during 2016-2023 and employs a Fixed Effects Model. Robustness tests use life expectancy, mean years of schooling, and per capita income. Empirical Results: Village Funds and Tobacco Excise Revenue Sharing improve human development in Central Java. However, impacts vary by HDI dimension. These fiscal transfer instruments mainly improve life expectancy and income, whereas mean years of schooling show no statistically significant results. This suggests stronger contributions for health and income than for education. Implications: These findings suggest that fiscal transfer policies should improve targeting and effectiveness to support long-term human development and reduce regional disparities, especially in education outcomes. JEL Classification: O18, H71, I31, H77, O15 How to Cite:Syamsyifa, W., & Runtiningsih, S. (2026). Do Village Funds and Tobacco Excise Revenue Sharing Improve Human Development? Signifikan: Jurnal Ilmu Ekonomi, 15(2), 557-570. https://doi.org/10.15408/sjie.v15i2.51263.