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The flypaper effect as political budget to achieve economic growth in Eastern Indonesia

Author

Listed:
  • Rudy Badrudin
  • Muhammad Rimawan

Abstract

The allocation of resources into the capital expenditure is a process that is loaded with political interests. This relates to the politics of local government budgets in managing the budget and how regional financial management can be audited by the Supreme Audit Agency through audit opinion statement as a control variable. The purpose of this study is to determine empirically the flypaper effect as political budget to achieve economic growth in Eastern Indonesia. The purposive sampling method was used resulting in a total of 86 samples for 10 years period observations. The analysing method is used E-views. The results of this study indicate that general allocation fund and own source revenue have a positive significant effect on capital expenditure; not occurs flypaper effect; and the audit opinion statement has a positive effect on economic growth in districts in Eastern Indonesia but not significant.

Suggested Citation

  • Rudy Badrudin & Muhammad Rimawan, 2022. "The flypaper effect as political budget to achieve economic growth in Eastern Indonesia," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 15(3), pages 313-331.
    • Handle: RePEc:ids:ijtrgm:v:15:y:2022:i:3:p:313-331
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