Spending Allocation, Capacity and Village-Owned Enterprises: Does it Matter to Village Income in Indonesia?

Abstract

Purpose: This paper aims to analyze the influence of village spending, village device capacity, and village-owned enterprise on village income. The data source is The Village Potential Statistics 2018, testing was conducted on 5,791 villages in Indonesia. Methodology: The methodology used in this study is ordinary least square regression analysis by comparing two regression models both Java Island and outside Java Island. Findings: The results of the study found that either Javanese models or outside Javanese models showed spending on government administration, development, empowerment, and development had a positive and significant effect on village income levels. The number of village apparatus and village-owned enterprises units has a positive and significant effect on the village income level while in outside Java does not. Meanwhile, the education level of head of village, the education level of secretary had no influence on the village's income level in Java Island. Whereas in Outside Java, the level of education of the village head, the number of village apparatus also positively affects the village income level. Then, the education level of the village secretary, and the village-owned enterprises outside Java Island did not have a significant influence on the village income level. Originality/Value: This paper have a depth analyze to village income level in Indonesia with compared between Java Island and Outside Java Island.