The flypaper effect phenomenon of intergovernmental transfers during the Covid-19: Evidence from Indonesia

Autor: Nurlaela Wati, Lela, Ispriyahadi, Heri, Habibi Zakaria, Dhika
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu
Volume 40
Issue 2
ISSN: 1846-7520
1331-8004
Popis: This study aims to confirm the flypaper effect phenomenon and the impact of the Covid-19 pandemic on local own-source revenue (LOR), general allocation fund (GAF), and local government financing on local government expenditure in Indonesia. The research used a quantitative method, while the sample was data on regional government budget (RGB) realization in 335 local governments in 2019 – 2020. The data were analyzed using Moderating Regression Analysis. The study found that there was a flypaper effect phenomenon that encouraged the local governments to use GAF, instead of LOR for their local expenditure. The GAF and local government expenditures were higher during the Covid-19 period. To overcome the flypaper effect phenomenon, the central government is advised to improve the GAF policy by setting priorities for its use. Local governments must encourage micro, small, and medium enterprises to help support LOR. This study proves there exists the phenomenon of the flypaper effect in developing countries that implement the presidential system (republic) and provide substantial empirical evidence on government spending policies during crisis and non-crisis (Covid-19).
Ova studija ima za cilj potvrditi fenomen efekta muholovke i utjecaj pandemije Covid-19 na lokalne prihode iz vlastitih izvora (LOR), fond opće raspodjele (GAF) i financiranje lokalne samouprave na rashode lokalne samouprave u Indoneziji. U istraživanju se primjenjuje kvantitativna metoda, a za uzorak su korišteni podaci o realizaciji regionalnog proračuna (RGB) u 335 jedinica lokalne samouprave u razdoblju 2019. – 2020. Podaci su analizirani moderirajućom regresijskom analizom. Studija je otkrila da je postojao fenomen efekta muholovke koji je potaknuo lokalne vlasti da koriste GAF umjesto LOR za svoje lokalne izdatke. GAF i rashodi lokalne samouprave bili su veći tijekom razdoblja Covid-19. Kako bi se prevladao fenomen efekta muholovke, središnjoj vladi se savjetuje da poboljša politiku GAF postavljanjem prioriteta za njezinu upotrebu. Lokalne vlasti moraju poticati mikro, mala i srednja poduzeća da pomognu podržati LOR. Ova studija dokazuje da postoji fenomen efekta muholovke u zemljama u razvoju koje provode predsjednički sustav (republika) i pruža značajne empirijske dokaze o politici državne potrošnje tijekom krize i bez krize (Covid-19).
Databáze: OpenAIRE
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