Effective regional budget may significantly affect the development of province in Indonesia. Subsidy from central government heavily composed in regional budget. This shows low real regional income which means distric...Effective regional budget may significantly affect the development of province in Indonesia. Subsidy from central government heavily composed in regional budget. This shows low real regional income which means districts are still depending on budget from central government in general. This research aims to analyze some local factors that affect the regional growth and poverty in 28 provinces in Indonesia. Data panel and heterogeneous regression would be employed in the research. Real regional income, transfer revenue, and labor are the most significant factors to regional growth differently, but it has a different sign as well as the poverty rate. Heterogeneous regression may give better model analysis than the simple one.展开更多
文摘Effective regional budget may significantly affect the development of province in Indonesia. Subsidy from central government heavily composed in regional budget. This shows low real regional income which means districts are still depending on budget from central government in general. This research aims to analyze some local factors that affect the regional growth and poverty in 28 provinces in Indonesia. Data panel and heterogeneous regression would be employed in the research. Real regional income, transfer revenue, and labor are the most significant factors to regional growth differently, but it has a different sign as well as the poverty rate. Heterogeneous regression may give better model analysis than the simple one.