The Effect of Transfers to Regions on Economic Growth in South Sulawesi Province

Muhammad Maulana (), Marsuki, Fatmawati and Retno Fitrianti
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Muhammad Maulana: Hasanuddin University
Marsuki: Hasanuddin University
Fatmawati: Hasanuddin University
Retno Fitrianti: Hasanuddin University

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 2232-2242 from Springer

Abstract: Abstract This research examines how regional transfers influence economic growth in South Sulawesi Province, focusing on three primary types of government allocations: the Revenue Sharing Fund (DBH), the General Allocation Fund (DAU), and the Special Allocation Fund (DAK). The study aims to test and provide empirical insights into the roles of these transfers in fostering economic growth. Specifically, the population of this study is agencies/cities in 13 within South Sulawesi Province, each experiencing economic growth of less than 4% in 2023. Data for this analysis were collected from reliable sources, namely the Central Bureau of Statistics and the Directorate General of Fiscal Balance, covering a five-year period from 2019 to 2023. Employing a quantitative approach, the study utilizes panel data regression to analyze relationships between these funds and economic growth. Preliminary findings indicate that both the Revenue Sharing Fund and General Allocation Fund contribute significantly to economic growth, suggesting these transfers play an essential role in regional economic stability and development. In contrast, the Special Allocation Fund appears to have no significant effect on growth, implying that its impact may be less direct or influenced by other variables. Overall, the study underscores the importance of regional transfers particularly DBH and DAU in supporting economic growth, while also highlighting potential areas for further investigation regarding the role of DAK.

Keywords: Transfer to Regions; Revenue Sharing Fund; General Allocation Fund; Special Allocation Fund; and Economic Growth (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-758-8_178

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DOI: 10.2991/978-94-6463-758-8_178

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