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International Journal of Law and Management: The exploration of effect of financial performance to the public welfare
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Abstract
Purpose – The purpose of this paper is to test the effects of the financial performance of local governments
to the level of welfare in 25 city/regency in South Sulawesi during 2009–2014.
Design/methodology/approach – The financial performance is measured by the rate of local
autonomy, the effectiveness of local own-source revenue, budget harmony and budget absorption, while the
welfare society measured by the Human Development Index (HDI), unemployment and poverty level.
Findings – The regression analysis showed that the performance of region autonomy proved to increase the
HDI over the next year and to reduce the poverty rate in two and three years ahead, however, has no correlation
with the unemployment. The effectiveness of local own-source revenue can lower unemployment at two and
three years ahead but failed to increase the HDI and to reduce poverty. Harmony of spending also neglected to
raise the HDI and to reduce the level of unemployment although it can alleviate poverty. The level of budget
absorption can improve HDI and reduce the unemployment at two and three years ahead, but failed to lower
poverty. Expenditure harmony and budget absorption failed to moderate the relationship between local
autonomy, the effectiveness of local own-source revenue and all measurement of welfare, while the expenditure
harmony able to moderate the relationship between the effectiveness of local own-source revenue and HDI.
Originality/value – To the best of authors’ knowledge, no previous study has comprehensively studied
the effects of level of regionality autonomy and effectivity of local own-source revenue to public welfare, and
the moderation effect of Expenditure harmony, budget absorption in relationship between financial
performance of local government to public welfare, especially in Indonesia.
Abdul Hamid Habbe - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2021
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Abdul Hamid Habbe. (2021).International Journal of Law and Management:
The exploration of effect of financial
performance to the public welfare.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd