FLYPAPER EFFECT DANA ALOKASI UMUM DAN PENDAPATAN ASLI DAERAH TERHADAP BELANJA DAERAH PROVINSI INDONESIA

Abstract

This study aimed to determine the effect of the General Allocation Fund (DAU) and Region Own Source Revenue (PAD) to the Region Expenditure at the provincial governments in Indonesia so it can be proved whether there were flypaper effect or not. The variables used in this study is the General Allocation Fund and Region Own Source as the independentt variable and Region Expenditure as the dependentt variable. The sample selection method is purposive sampling with total sample 32 provinces. The data that used in this study is secondary data that is the revenues and expenditures budget in 2013. The analysis model is a linear regression. The results of this study indicate that the Region Own Source have more significant influence to region expenditure than the General Allocation Fund. This shows that the local government level in the Indonesian province more relied on revenue rather than aid from the central government.