Detail buku

No BukuT.IPB.2010.13
PembimbingProf. Dr. Ir. Bambang Juanda, MS
AbstrakABSTRAK INDONESIA : Tidak ada ABSTRAK INGGRIS : SITI ANNI MAKRIFAH. An Analysis of Regional Financial Management and Its Impact on Development Growth East Java Province. Under direction of BAMBANG JUANDA and BUDIASIH. Since the implementation of fiscal decentralization, local government has bigger authority to manage regional income and regional spending integrated in spending budget. As outcomes, local government can raise the independency on finance and government accountability to boost economic development. The aims of this research are to analyze improvement of regional finance management. The aims of this research are to analyze improvement of regional finance management, economic development and effects of government spending allocation on economic development in East Java Province from 2002 to 2008. A descriptive analysis is utilized as methodology to find out development of regional finance accountability and result of economic development. A panel vector auto regression model, is utilized to analyzed the effects of government spending allocation on economic growth, human development index (HDI) and poverty rate. The result provides that ratio of of Local Own Revenue (PAD) in comparison to the total local income and or total local spending is still low and it tends to decline every year. It means that the local government did not yet optimally exploit the income sources from their potencies. In other word,there is dependency on central government funding for regional development. The indicators of economic development which are HDI, poverty rate and disparity have better result, even though in the beginning of implementation of fiscal decentralization the regional development disparity getting wider. Indeed, it takes time and needs good preparation to obtain the expented result of economic development since the implementation of fiscal decentralization. Government spending allocation has impacts on Groos Regional Domestic Product (GRDP) and Human Development Index (HDI) in the long and short term. Capital spending has significant effect on economic development. Capital spending variable has the biggest effect on prediction of variance percentage contribution, but the effect on government spending total is not that big. It means that private sector and society participate actively on economic development and government only acts as a stimulator through spending allocation Keywords: Fiscal Decentralization, Regional Finance, Economic Development, Panel Vector Autoregresion (PVARs)