Abstract

This paper’s aim is to explain the role of the local public sectors in regional economic growth in Ex-Residency of Surakarta. The question we ask in this paper is whether local taxes and local expenditures affect regional economic growth in Ex Residency of Surakarta. This question is very important in two respect. First, It would be especially interesting to know whether local government taxes and/or expenditures have had an impact on regional economic growth. An alternative view argues againts any such impact. Second, as local autonomy will soon be granted, local government need to understand the mechanism by which local taxes and expenditures affect the regional economy.The major finding in this paper area as follows. The role of local government in regional economic growth has been very significant. Local taxes and local revenues have a significant negative effect on local regional economic growth, while local government investment have a significant positive effect on regional economic growth. On the other hand, Local government consumption and labor force have no significant effect on regional economic growth. One of the crusial policy implication of this paper is that we must enhance the role of local government, local autonomy having been recently introduced. More specifically, the central government should transfer more revenue sources to its lower level local government through. For example, revenue sharing of national taxes.Keywords: local public sector, regional economic growth, regional economic gap.

Highlights

  • This paper’s aim is to explain the role of the local public sectors in regional economic growth in Ex Residency of Surakarta

  • Local government consumption and labor force have no significant effect on regional economic growth

  • One of the crusial policy implication of this paper is that we must enhance the role of local government, local autonomy having been recently introduced

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Summary

PENDAHULUAN

Tidak dapat dipungkiri bahwa kehidupan selama ini sangat bergantung kepada jasa yang disediakan oleh pemerintah. Hal ini sama dengan apa yang dikemukakan oleh Kompas (Kompas,2000: 6), yaitu bahwa hasil studi mengenai hubungan antara government size dan growth di Indonesia dan di Australia menunjukkan bahwa pengurangan pengeluaran pemerintah – terutama untuk sektor publik yang tidak mempunyai pengaruh yang nyata - akan menaikkan tingkat pertumbuhan. Kerangka Penelitian Dalam penelitian ini, analisis mengenai peranan sektor publik local terhadap pertumbuhan ekonomi regional, akan dilakukan dengan mengestimasi factor-faktor yang termasuk dalam sector pubik diantaranya pengeluaran pemerintah daerah yang meliputi konsumsi dan investasi pemerintah daerah, , penerimaan pemerintah daerah dari pajak, laju angkatan kerja, dalam mempengaruhi pertumbuhan ekonomi regional di wilayah Surakarta selama tahun 1987-2000 dalam persamaan regresi dengan model panel data dari 7 Kabupaten/kota di Eks Karesidenan Surakarta. Untuk data produk domestik bruto harus menggeser tahun dasar yang dipakai menjadi berdasarkan harga konstan tahun 1983

Produk Domestik Regional Bruto
Investasi Pemerintah Daerah : Ig
MODEL REGRESI DENGAN PANEL DATA
ANALISIS HASIL ESTIMASI DAN PEMBAHASAN
SARAN DAN IMPLIKASI KEBIJAKAN
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