Economic Journal of Emerging Markets
Volume 7 Issue 1, 2015

Flypaper effect at the local governments: an empirical analysis for Aceh Province

Irham Iskandar (Development Planning Agency (Bappeda), Daerah Istimewa Aceh, Indonesia)

Article Info

Publish Date
04 Mar 2016

Abstract

The objective of this reseach is to test the phenomenon of flypaper effect in local governments in Aceh Province during 2008 to 2012. The research used panel data analysis. Technically, it regresses the independent variables of the local owned revenue and unconditional grants on dependent variable of public spending where the institutions as a moderating variable. The flypaper effect was found in the case of public and infrastructure expenditures. The study also found that the institution is capable to reduce the use of unconditional grants. It means that by the role of institution the local owned revenue can be optimized.

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Journal Info
Economic Journal of Emerging Markets
Website

Abbrev

JEP

Publisher

Universitas Islam Indonesia

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...