Antecedents of Regional Financial Independence: A Moderating Effect of Capital Expenditure at Local Government Level in Indonesia

  • Fathan Qoriiba Universitas Pembangunan Nasional Veteran Jakarta
  • Khoirul Aswar Universitas Pembangunan Nasional Veteran Jakarta
  • Ermawati Universitas Pembangunan Nasional Veteran Jakarta
DOI: https://doi.org/10.22610/jebs.v13i4(J).3199
Keywords: Regional Tax, General Allocation Fund, Special Allocation Fund, Capital Expenditure, Regional Financial Independence

Abstract

This study aims to examine regional tax, general allocation fund, special allocation fund, and capital expenditure as a mediating on regional financial independence. Regency/City in West Java Province was used as a sample in this study. The purposive sampling method was used in this study to select a sample of 27 districts/cities in West Java Province from 2016 to 2019. Hypotheses in this study were tested using Structural Equation Model using Smart PLS 3.0 software. This study results in Regional Tax, General Allocation Fund, and Special Allocation Fund have a significant effect on regional financial independence, while capital expenditure is not able to mediate the effect of regional tax, general allocation fund, and special allocation fund on regional financial independence. For Local Governments, it is expected to optimize local taxes through the improvement of adequate public services. Then, given that the composition of general allocation funds and special allocation funds is quite dominant, the funds should be optimized for the development sectors so that their use can be efficient which will encourage economic growth and indirectly increase regional financial independence.

Downloads

Download data is not yet available.
Published
2021-09-04
How to Cite
Qoriiba, F., Aswar, K., & Ermawati. (2021). Antecedents of Regional Financial Independence: A Moderating Effect of Capital Expenditure at Local Government Level in Indonesia. Journal of Economics and Behavioral Studies, 13(4(J), 41-49. https://doi.org/10.22610/jebs.v13i4(J).3199
Issue
Vol 13 No 4(J) (2021)
Section
Research Paper

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.