KARYA DOSEN Fakultas Ekonomi UM, 2016

Ukuran Huruf:  Kecil  Sedang  Besar

Empirical Study about The Interac tion Between Equalization Funds, Regional Financial and Human Development Index in Regional Economic

Imam Mukhlis

Abstrak


ABSTRACT

 

Empirical Study about The Interaction Between Equalization Funds,

Regional Financial and Human Development Index in Regional

Economic

Timbul Hamonangan Simanjuntak1

 & Imam Mukhlis2

1

 Faculty of Economics, Maranatha Cristhian University, Bandung, West Java, Indonesia

2

 Faculty of Economics, State University of Malang, Malang, East Java, Indonesia

Correspondence: Imam Mukhlis, Faculty of Economics, State University of Malang, Malang, East Java,

Indonesia. Tel: 62-0341-552-888. E-mail: imm_mkl@yahoo.com

Received: October 21, 2014 Accepted: October 30, 2014 Online Published: December 25, 2014

doi:10.5539/ijef.v7n1p192 URL: http://dx.doi.org/10.5539/ijef.v7n1p192

Abstract

This research aims to analyze the interaction between equalization funds, regional financial and human

development index in East Java Province, Indonesia for 2008–2011. The method of analyze is Partial Least

Square (PLS). The dependent variable used is equalization funds as a proxy for fiscal decentralization while the

intervening variable used is fiscal capacity, fiscal independent and structure of regional government expenditure;

the dependent variable used is human development index as proxy for social welfare live. The study revealed

that equalization fund has a negative direct effect to fiscal capacity, fiscal capacity has a positive direct effect on

financial independent, fiscal capacity has no negative direct effect on structure of regional government

expenditure, financial dependent has positive direct effect on human development index, financial dependent has

a positive direct effect on structure of regional government expenditure, and structure of regional government

expenditure has negative direct effect on human development index. Based on this conclusion, regional

government must focus on allocating the equalization fund to serve the public good provision.

Keywords: equalization funds, fiscal capacity, financial dependent and partial least square