Corruption and Governance Factors as The Determination of The Regional Government Revenue in Indonesia
Abstract
This study aims to analyze the factors of corruption and governance in determining the amount of Regional Government Revenue in all provinces in Indonesia. This research method uses quantitative approach by analyzing the number of corruption cases that have been taken in kracht in court as well as the results of evaluations of the regional government performance from 2010 to 2017. A total of 30 provinces from 34 provinces in Indonesia were taken as samples to avoid abnormal distribution. The model used is the Fixed Effect Model (FEM) showing that the factors of corruption and governance determine significantly in the opposite direction, where the corruption factor determines the negative direction while the governance factor determines the Regional Government Revenue positively. The two independent variables show that there is a close relationship between corruption and governance, this can occur with improved governance, which will reduce the level of corruption so that it can increase Regional Government Revenue. One way of governance to reduce the occurrence of corruption is to implement the application of one-stop service and e-system.
References
Arsjad, N. (1992). States Finance. Jakarta. Alfabeta.
Bahri, S. (2008). Analysis of Factors Affecting Corruption and APBD Corruption Mode in Malang Raya. Management, Accounting, and Business. Vol. 6, No.1. April 2008. pp. 449 – 456.
Callejas, D. G. (2010). Corruption, Economic Freedom and Political Freedom in South America: In Pursuit of the missing Link, Borradores Departamento de Economia. No. 34, August 2010
Chetwynd, E., Chetwynd, F. and Spector, B. (2003). Corruption and Poverty: A Review of Recent Literature. Washington.
Davey, K, J. (1988). Regional Government Financing: International Practices and Relevance for the Third World. Jakarta. PT. Gramedia Pustaka Utama.
Fiorino, N. and Galli, E. (2010). An Analysis of the Determinants of Corruption: Evidence from the Italian Regions. Working Paper. No. 171. September 2010.
Kwabena, G. and Brempong, B. (2002). Corruption, Economic Growth, and Income Inequality in Africa. Economics of Governance 2002. (3) pp. 183-209. Departement of Economic. University of South Florida
Lenny, H. (2014). Managing Indonesia from the Regions, Partnership for Governance Reform. October 16, 2014 [online] https://pemerintah.net/indeks-tata-kelola-pemerintah-daerah-versi-igi/ (accessed 6 January 2019)
Nawatmi, S. (2014). Corruption and Economic Growth of Asia Pacific Countries. Journal of Business and Economics. Vol. 21, No. 1 (2014). pp. 73 – 82.
Nawatmi, S. (2016). The Impact of Corruption on Regional Economic Growth. 3rd Economic & Management Media. Vol. 31. No.1 January 2016. pp. 14 – 25. Stikubank University.
Nielsen, M. and Haugaard, J. (2000). Democracy, Corruption, and Human Development. Approaches to Development. Spring 2000. University of Aarhus. Denmark.
Pirade. R., Mus. A.R., Mas’ud, M. and Nur, A.N. (2018). Evaluating Financial Performance in Local Government: A Study in South Sulawesi Province Indonesia. Macrothink Institute. Vol.5. No.2, pp.31-43
Rusydi, B. (2010). Analysis of Determinants of Local Government Financial Performance and Detection of Fiscal Illusions (Case Study of Provinces in Indonesia 2005-2008). Unpublished essay Diponegoro University.
Satiene, T. (2007). A Connection between Corruption and Unethical Behavior of Public Officials. Siauliai University. Social Research/Socialiniai tyrimai, 2007. Nr. 2. (10). pp. 155–160
This work is licensed under a Creative Commons Attribution 4.0 International License.
