PENGARUH BELANJA PEMERINTAH DAERAH DAN PENDAPATAN PERKAPITATERHADAP INDEKS PEMBANGUNAN MANUSIA (STUDI KASUS DI KABUPATEN/KOTA PROVINSI JAWATENGAH)

Abstract

During the era of local autonomy and fiscal decentralization, local governments is provided with authority to increase their income and to conduct allocative function in setting priority of local development. This research is intended to examine the influence of government expenditure, income percapita on human development index at regencies/municipalities level in Central Java Province.Research population consist of 29 regencies and 6 municipalities, employing secondary data from Central Bureau of Statistic of Central Java Province and regencies/municipalities level in Central Java Province within the period of 2006 up to 2008. Data analysis is conducted by using Fixed Effect Model (FEM) with Eviews program software. The results of this study indicate that, first government expenditure has a positive and significant effect on human development index at regencies/municipalities level in Central Java Province. Second, income percapita has not significant effect on human development index at regencies/municipalities level in Central Java Province.