Pengaruh Transfer antar Pemerintah pada Kinerja Fiskal Pemerintah Daerah Kota dan Kabupaten di Indonesia
Using the simultaneous equation system, we concluded that the intergovernmental transfers stimulate the increase of the local government expenditures larger than that of the local own revenue. It seems that the dependency of local government onto the intergovernÂ¬mental transfers will be worse. The local governments in the long run tend to use the exterÂ¬nal borrowing to finance the increase of their expenditures. Those results above suggest that (1) the distribution of intergovernmental transfers among regions should consider the local tax effort, and (2) services minimum standard plays an important role to realize the expenÂ¬ditures efficiency.
Keywords: Intergovernmental transfer, fiscal performance, simultaneous equation.
Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.
EJEM by http://journal.uii.ac.id/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.