PENGARUH GOOD LOCAL GOVERNANCE, NET EKSPOR, PERTUMBUHAN EKONOMI, BELANJA DAN PENDAPATAN DAERAH TERHADAP KORUPSI (Studi Kasus 33 Provinsi di Indonesia)

Abstract

Corruption become a major issue in Indonesia’s development. Fiscal decentralization is expected to reduce corruption, but in reality the wide-spread corruption gnaws local government. This research aims to analyze the effect of good local governance, net export, economic growth, government expenditure, and government revenue against corruption in 33 provinces in Indonesia. By proxying fiscal decentralization into government expenditure and government revenues, this research inquires whether fiscal decentralization is impactful to corruption. Devolution of authority to local government is also recognized to be followed by the transfer of corruption which in 33 provinces in Indonesia. The authority of local officials, if often followed by corruption. This research uses Fixed Effect Model to analyze corruption in 33 provinces in Indonesia during 2008-2012. The data uses amount of losses which indicates corruption as the dependent variable and good local governance, economic growth, net export, government expenditure, government revenue as independent variables. This model assume heterogeneity among variable data by province in Indonesia and the existence of time invariant. The result shows that there is a positive correlation between local government expenditureagainst corruption. This implies that increasing government expenditure will increase local government corruption in Indonesia (ceteris paribus). Meanwhile, government revenue shows a negative correlation. The increasing of economic growth is followed by a decline in the level of corruption. However, it does not, guarantee the decreasing amount of state losses (ceteris paribus). There is no significant effect of good local governance variables and net exports against corruption in case study of local government in Indonesia.