The allocation of special autonomy funds and their impact on regional economic inequality in Papua Province

Abstract

Allocation of Special Autonomy Funds and Their Impacts on Regional Economic Inequality (Case Study in Papua Province in 2010-2018). This study aimed to determine the impact of the allocation of special autonomy funds in the field of regional economic inequality both directly and indirectly through the human development index in Papua Province. The type of data used was panel data and data collection was done by the documentation method. The data were analyzed using the Simultaneous Equation Model approach with the help of the Amos 21 SPSS software. The results showed that the variable of special autonomy funds in education and health had a significant positive effect on the human development index, while the variable of special autonomy funds in infrastructure and in the field of community economic empowerment was not significant to the human development index. Furthermore, the special autonomy fund in infrastructure directly has a significant negative effect on regional economic imbalances. While the special autonomy fund in the field of community economic empowerment does not have significant effect on regional economic inequality. Indirectly through the HDI, variables of special autonomy funds in the fields of education, health, infrastructure, and community economic empowerment do not have a significant effect on regional economic inequality.