Suchergebnisse

Starting 2015, Government of Indonesia introduced Affirmation Special Allocation Fund (DAK). Affirmation DAK is expected to fund infrastructure, accessibility and improvement of basic services, as well as aiming to accelerate development in disadvantaged areas, border areas, outer islands, and transmigration areas. These targeted regions on average have low GRDP per capita. The purpose of this study is to determine the effect of Affirmation DAK on the regional economy in Indonesia. The existence of Affirmation DAK is expected to support equal distribution of basic infrastructure and services and accelerate development in Affirmation DAK receiving area which is a region with characteristics of disadvantaged areas, border areas, outermost islands and transmigration areas. This study uses panel data of 491 regencies/municipalities in 2011-2018 and using the fixed effect estimation method. Empirical results show that Affirmation DAK has not had a positive effect on GRDP per capita. Limiting estimation only to Affirmation DAK recipient regions, there is also no positive association between Affirmation DAK and GRDP per capita. The results of this study also show that the impact of Affirmation DAK is very small on the recipient area, implying that Affirmation DAK in its current form and existing pool fund size, has not yet an effective policy for regions exiting from "the lagging regions trapâ€. It is instead, still, revenue sharing and general allocation fund (DAU), that have consistent positive effect on regional economic growth, both are block grants that to an extent related to more discretionary to local governments in terms of use of fund.

Using panel data for the period 1993 to 2005 from 16 regions of the Philippines, this study investigates whether the resource allocation efficiency of Philippine rural banks resulting from the quantity and quality of banking intermediation activities affects regional economic growth. To explore this relationship, four measures of resource allocation efficiency were alternatively tested employing pooled generalized least squares (EGLS) estimation. The findings suggest that Philippine rural banks need to make allocative adjustments in the areas of branch presence, operational efficiency and credit participation. These results lend support to government efforts to strengthen the rural banking sector and to increase the volume of investments in the regions. Important policy implications of these findings include the need to enhance confidence in the Philippine rural banking system, to encourage savings in regional rural banks, and to ensure efficient transfer of resources from savers to investors.

International humanitarian aid is pivotal in the response to natural disasters suffered by low-and middle-income countries. While its allocation has been shown to be influenced by donors' foreign policy considerations, power relations within recipient countries have not been addressed. This paper is the first to investigate the role of regional and ethnic favoritism in the formation of humanitarian aid flows. We construct a novel dataset combining information on birth regions of political leaders and the geographic distribution of ethnic groups within countries with high numbers of natural disasters building on census (IPUMS) and Demographic and Health Surveys (DHS) data. Our results suggest that the Office of US Foreign Disaster Assistance (OFDA) disburses larger amounts of aid when natural disasters affect the birth region of the countries' leader. We find some evidence that OFDA disburses aid more frequently to leaders' birth regions as well as when regions hit by disasters are populated by politically powerful or discriminated ethnicities. Our findings imply that humanitarian aid is not given for humanitarian reasons alone, but also serves elite interests within recipient countries.

This paper examines the effect of political competition in local elections in regional allocation of public investment. The study employs data on Mexican elections covering the period 1990-1995, characterized by an increase in electoral competition & coupled with increasing demands for decentralization throughout the states. Empirical evidence supports the hypothesis that regional allocation of public investment by central government was driven by 'political opportunism' & 'local pork-barrel politics.' A positive relationship was found between the regional allocation of public investment & support for the central ruling party. This might indicate that local spending inefficiencies were partially explained by the specific support for the incumbent party. 4 Tables, 43 References. Adapted from the source document.

Purpose: This study aims to examine the role of regional and central government through general allocation funds in making capital expenditures oriented to public services. The research conducts in the West Java Province, Indonesia by analyzing the financial reports of the local government of Bogor City, Depok City and Bekasi City for 10 years, from 2008 to 2018. Design/methodology/approach: Hypothesis testing carries out using multiple linear regression. Findings: This research succeeds in revealing that regional autonomy in managing regional revenue increased the government capital spending. The involvement of the central government also plays an important role in regional development through general allocation funds. Research limitations/implications: This shows that local governments are still very dependent on the availability of funds to meet public needs. Practical implications: Economic aspects in investment decisions could not be fully applies, especially considering the rate of return on investment. So that with the available funds, the government still prioritizes social and cultural aspects in performing public services through capital expenditures. Originality/value: The research explored the unrevealed value from technical financial report aspects that affect the government investment. Paper type: Research paper.

Examine the costs and benefits of fiscal ?wars? between Brazilian statesLatin American Business examines Brazil's use of fiscal incentives to attract investors to help remedy disparities in the country's regional distribution of income. Since the 1990s, individual Brazilian states have taken the initiative in trying to lure domestic and foreign firms to locate within their borders, targeting the automotive industry, textiles, and shoe production. But their efforts have led to mixed results and questions about whether these fiscal wars have been legitimate attempts at regional economic developm

This study aims to determine the effect of the General Allocation Fund (DAU) and the Special Allocation Fund (DAK) on the regional expenditure of the City Government of Tidore Islands. This research was conducted considering that regional expenditures have been used for routine expenditures which are relatively less productive. Therefore, in an effort to improve the quality of public services, local governments should change the composition of their spending. The results of the study show that the General Allocation Fund has a positive and significant effect on the Regional Government Expenditures of the City of Tidore Kepulaun in 2016-2018. The Special Allocation Fund has a positive and insignificant effect on the realization of regional expenditure in the City Government of Tidore Islands in 2016-2018. The General Allocation Fund and the Special Allocation Fund together have a positive and significant effect on the Regional Expenditure Realization of the Tidore Islands City government in 2016-2018.