FLYPAPER EFFECT PADA PAD DAN DAU TERHADAP BELANJA DAERAHKABUPATEN/KOTA GERBANG KERTOSUSILO

Abstract

This research is aimed to test the flypaper influence to the local own source revenue (PAD) and the
general allocation fund (DAU) to the expenditure in district/cities in Gerbang Kertasusila. The population is 7
local goverments of districts and cities in Gerbang Kertasusilo. The period of observation of the sample in 20102014

periods with the total population as many as 35. The data collection method has been done by using
documentation method of secondary data source by collecting, recording and processing the data that is related
to the research in 5 years, in 2010-2014 periods. The data analysis has been done by using multiple linear
regressions and SPSS (Statistical Product and Service Solutions). The research shows that: 1) the local own
source revenue has significant and positive influence to the local budget; 2) the general allocation fund has
significant and positive influence to the expenditure; 3) the influence of local revenue is larger than general
allocation fund to the expenditure, it can be concluded that the flypaper influence does not occur to the financial
districts/cities in Gerbang Kertasusila and the insufficient development in each region and they do not have to
depend on funds from the central goverment called general allocation fund.

Keywords: Flypaper, local own source revenue (PAD), general allocation fund, expenditure