The inclusive economic development model in Sulawesi island

Rudy Badrudin, Manggar Wulan Kusuma, Ranti Yulia Wardani


This study aims to determine whether there is an inclusive economic development in Sulawesi Island. Source data used are secondary data from the financial statements of the Local Government regency and city in Sulawesi Island in 2009-2016. The data analysis technique used is the analysis Partial Least Square were tested using samples 9 different areas. The results showed that 1) general allocation fund has positive effect on capital expenditure; 2) own source revenue has positive effect on capital expenditure; 3) capital expenditure has positive effect on economic growth; 4) economic growth has negative effect on welfare of society; and 5) economic growth has negative effect on poverty


fiscal decentralization, inclusive economic development model

Full Text:



Badrudin, R., & Kuncorojati, I. (2017). The Effect of District Own-Source Revenue and Balance Funds on Public Welfare by Capital Expenditure and Economic Growth as an Intervening Variable in Special District of Yogyakarta. Jurnal Manajemen Dan Kewirausahaan, 19, 54–59.

Badrudin, R., & Siregar, B. (2015). The Evaluation of the Implementation of Regional Autonomy in Indonesia. Economic Journal of Emerging Market, 7(1), 1–11. Retrieved from

Darwanto, & Yustikasari, Y. (2007). The Influence of Economic Growth, Local Original Income, and General Allocation Fund to Allocation of Capital Expenditure Budget. In Simposium Nasional Akuntansi X.

Jonaidi, A. (2012). Analysis of Economic Growth and Poverty in Indonesia. Journal of Economic Studies, 1(1), 140–164.

Kusumadewi, D. A., & Rahman, A. (2007). Flypaper Effect On General Allocation Fund (DAU) And Local Original Income (PAD) To Local Expenditure In Regency/City In Indonesia. Journal of Accounting Auditing Indonesia, 11(1), 67–80.

Lane, J.-E. (2013). The Principal-Agent Approach to Politics: Policy Implementation and Public Policy-Making. Open Journal of Political Science, 3(2), 85–89.

Manek, M., & Badrudin, R. (2016). The Effect of Original Income and Balancing Funds on Economic Growth and Poverty in Nusa Tenggara Timur Province. Telaah Bisnis, 17(1), 81–89.

Sasana, H. (2009). The Role of Fiscal Decentralization to Economic Performance in Regency/Municipality of Central Java Province. Journal of Development Economics, 10(1), 103–124.

Setiawan, M. B., & Hakim, A. (2013). Human Development Index in Indonesia. Jurnal Economica, 9(1), 18–26. Retrieved from php?article=102802&val=473&title=INDEKS PEMBANGUNAN MANUSIA INDONESIA.

Siregar, B., & Badrudin, R. (2017). Degree of Fiscal Decentralization and Flypaper Effect: Evidence from Indonesia. Advanced Science Letters, 23(9), 9013–9019.

Wandira, A. G. (2013). The Effect of PAD, DAU, DAK, and DBH on Modal Spending. Accounting Analysis Journal, 2(1), 44–51.

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Copyright (c) 2018 Economic Journal of Emerging Markets

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Economic Journal of Emerging Markets (EJEM)

ISSN 1410-2641 (print), 2502-180X (online)

Indexed in:

Creative Commons License

Economic Journal of Emerging Markets by is licensed under a Creative Commons Attribution 4.0 International License.