IDEAS home Printed from https://ideas.repec.org/a/bsa/jtaken/v8y2022i2p177-198id647.html
   My bibliography  Save this article

The Effect of Accountability on the Efficiency of Local Government Expenditures

Author

Listed:
  • Wulan Sri Rahayu
  • Khoirunurrofik Khoirunurrofik

Abstract

This study aims to examine the effect of accountability, as one of the governance aspects, on the efficiency of local government spending at the district/city level in Indonesia. This study uses panel data analysis with 228 districts/city government entities from 2014 to 2018. The analysis is conducted in two stages; the first stage measures the efficiency of every local government by using Data Envelopment Analysis (DEA) method. The second stage estimates the effect of accountability and other control variables on local government expenditure efficiency by regression using the Tobit method. The result shows a non-linear relation between accountability, which is proxied using the Indonesia Audit Board Opinion Index, and the efficiency of local government expenditure. Initially, accountability will proceed hand in hand with increasing efficiency; however, at a certain point, an increase in accountability will no longer increase the efficiency level of local government expenditure. Another control variable that positively relates to efficiency is population expenditure per capita. Meanwhile, the ethnic fractionalization index (EFI) and distance negatively affect efficiency. The results of this study have not been able to show a relation between political competition and the gender of regional heads with efficiency.

Suggested Citation

  • Wulan Sri Rahayu & Khoirunurrofik Khoirunurrofik, 2022. "The Effect of Accountability on the Efficiency of Local Government Expenditures," Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, Badan Pemeriksa Keuangan Republik Indonesia, vol. 8(2), pages 177-198.
    • Handle: RePEc:bsa:jtaken:v:8:y:2022:i:2:p:177-198:id:647
    as

    Download full text from publisher

    File URL: https://jurnal.bpk.go.id/index.php/TAKEN/article/view/647/218
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bsa:jtaken:v:8:y:2022:i:2:p:177-198:id:647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Selvia Vivi Devianti (email available below). General contact details of provider: https://jurnal.bpk.go.id/index.php/TAKEN/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.