Izvorni znanstveni članak
https://doi.org/10.18045/zbefri.2022.2.353
The flypaper effect phenomenon of intergovernmental transfers during the Covid-19: Evidence from Indonesia
Lela Nurlaela Wati
orcid.org/0000-0001-7046-612X
; ekolah Tinggi Ilmu Ekonomi Muhammadiyah Jakarta, Indonesia
Heri Ispriyahadi
orcid.org/0000-0001-8919-198X
Dhika Habibi Zakaria
Sažetak
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).
Ključne riječi
flypaper effect; general allocation fund; local government expenditure; local government financing; local own-source revenue
Hrčak ID:
289641
URI
Datum izdavanja:
30.12.2022.
Posjeta: 595 *