Indonesian Journal of Economics and Management
Vol 3 No 2 (2023): Indonesian Journal of Economics and Management (March 2023)

Transfer Payments and Economic Sector Performance: Input-Output Analysis in Bandung Regency

Teti Sofia Yanti (Department of Statistics, Universitas Islam Bandung, Bandung, Indonesia)
Anneke Iswani Ahmad (Department of Statistics, Universitas Islam Bandung, Bandung, Indonesia)
Iwan Setiawan (Department of Accounting, Politeknik Negeri Bandung, Bandung, Indonesia)



Article Info

Publish Date
31 Mar 2023

Abstract

This study analyzes the effect of transfer funds on Bandung Regency's economic sectors in 2022, using input-output table analysis to formulate suitable allocation policies for economic development goals. The research was conducted using the Location Quotient (LQ) method. This research produced an inverse Leontif matrix. Leontif's inverse matrix can be used to analyze the interrelationships between economic sectors in Bandung Regency. Revised: The government transfer expenditure in Kabupaten Bandung in 2022 had a direct impact of IDR 459,979,360,622.89 on the Government Administration, Defense, and Mandatory Social Security sector. The indirect impact or multiplier effect on the other 16 economic sectors was IDR 241,790,256,760.42. Analysis through the Leontief inverse matrix shows that the increase of final demand in all sectors by IDR 1 billion would result in an output increase of IDR 1.53 billion in the Government Administration, Defense, and Mandatory Social Security sector. Conversely, if the final demand in that sector increases by IDR 1 billion, the output of all sectors will increase by IDR 1.02 billion. Therefore, the government transfer expenditure in Kabupaten Bandung positively impacted the growth of all economic sectors.

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Journal Info

Abbrev

ijem

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Indonesian Journal of Economics and Management (IJEM) is a journal published by the Accounting Department of Politeknik Negeri Bandung, Indonesia. IJEM (Online ISSN: 2747-0695) published thrice a year (March, July, and November). The journal invites scholars, practitioners, and researchers to submit ...