FLYPAPER EFFECT PADA DANA ALOKASI UMUM DAERAH PADA KABUPATEN/KOTA DI PROVINSI JAWA TIMUR

Abstract

The purpose of the research is to examine the possibility of flypaper effect occurencess at local goverment expenditure in East Java Province. The flypaper effect is detected by the more dominant general allocation fund influencing local goverment spending than local original revenue. The other objective is to examine the influence of DAU and PAD in predicting of local goverment expenditure, the possibility of flypaper effect at education expenditure’s regency/municipality in East Java Province, the possibility of flypaper effect at health expenditure’s regency/municipality in East Java Province, the possibility of flypaper effect at infrastructure expenditure’s regency/ municipality in East Java Province, and to know there is possibility flypaper effect difference among high PAD’s regency/municipality with low PAD’s regency/ municipality. This study uses secondary data in the form of time series data which is found at the realization report of APBD on regency/municipality in East Java Province from 2008 to 2011. Method of the sample uses purposive sampling method with a total sample is 38 regency/municipality in East Java Province. The instrument that used result is multiple regression. To test the sixth hypotesis is used independent sample t -test. The results of this research indicate that the effect of the general allocation fund for local goverment expenditure stronger than the effect of local original revenue. It is proved that there has occurred flypaper effect. The result also shows that DAU has stronger prediction than PAD in influencing the local expenditure prediction. The results also prove that the flypaper phenomenon occurs in education expenditure. The results also prove the effect of PAD on health expenditure greater than the effect of DAU. The result also shows the effect of PAD to infrastructure expenditure greater than the effect of DAU. This indicates does not occured the flypaper phenomenon. The result oe the research also shows that there is flypaper effect differences between high PAD’s regency/municipality with low PAD’s regency/municipality. Key words: Local Expenditure, Local Original Revenue, General Allocation Fund, Flypaper Effect, Education Expenditure, Health Expenditure, Infrastructure Expenditure