FLYPAPER EFFECT: ANALISA STEWARDSHIP PADA KEUANGAN DAERAH DI INDONESIA

Abstract

The purpose of this study is to analyze the phenomenon of Flypaper Effect on Regional Expenditures in Indonesia. Flypaper effect is a phenomenon when financing in the implementation of greater regional expenditure comes from central government transfer funds rather than local revenue. The sampling technique uses purposive sampling method. The study sample consisted of 465 observations of reports on the realization of regional government revenue and expenditure (APBD) in Indonesia in 2012-2016. The research method used in this study is quantitative by using multiple regression analysis. The results of this study indicate that local revenues and general allocation funds affect regional spending behavior. This is because the greater the income received, the greater the expenditure. The results also show the occurrence of the flypaper effect phenomenon in regional expenditure, which means that most local governments in Indonesia are more dependent on general allocation funds than local revenue in financing regional expenditure

Keywords: regional autonomy, local original income, general allocation fund, regional expenditure, flypaper effect