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The Effect of Local Own-Source Revenue and Balancing Funds on the Human Development Index (Empirical Study on Regencies/Cities in West Java Province for the Period 2017-2022).

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Title: The Effect of Local Own-Source Revenue and Balancing Funds on the Human Development Index (Empirical Study on Regencies/Cities in West Java Province for the Period 2017-2022).
Authors: Anggadanta, Rullyansyah, Silviana
Source: Journal Research of Social Science, Economics & Management; jul2025, Vol. 4 Issue 12, p2344-2352, 9p
Subject Terms: HUMAN Development Index, STATISTICAL significance, CITIES & towns, DECENTRALIZATION in government, REGIONAL disparities
Abstract: This research examines the effect of Local Own-Source Revenue (PAD) and Balancing Funds on the Human Development Index (HDI) in regencies/cities of West Java Province from 2017 to 2022. Despite the increasing HDI in the region, significant disparities persist, with Bandung City achieving the highest HDI (82.50) and Cianjur Regency the lowest (65.94) in 2022. The research problem centers on understanding how fiscal decentralization, through PAD and Balancing Funds, influences human development outcomes, particularly in addressing regional inequalities. The study employs a quantitative methodology, analyzing secondary data from HDI reports and regional budget realization reports for all 27 regencies/cities in West Java. Panel data regression analysis using EViews 13 software reveals that both PAD and Balancing Funds have a positive and statistically significant effect on HDI. Specifically, a 1-unit increase in PAD raises the HDI by 3.42 points, while Balancing Funds contribute 1.78 points. However, these variables explain only 52.87% of the variability in HDI, indicating the need to consider additional determinants such as governance quality and infrastructure development. [ABSTRACT FROM AUTHOR]
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Database: Complementary Index
Description
Abstract:This research examines the effect of Local Own-Source Revenue (PAD) and Balancing Funds on the Human Development Index (HDI) in regencies/cities of West Java Province from 2017 to 2022. Despite the increasing HDI in the region, significant disparities persist, with Bandung City achieving the highest HDI (82.50) and Cianjur Regency the lowest (65.94) in 2022. The research problem centers on understanding how fiscal decentralization, through PAD and Balancing Funds, influences human development outcomes, particularly in addressing regional inequalities. The study employs a quantitative methodology, analyzing secondary data from HDI reports and regional budget realization reports for all 27 regencies/cities in West Java. Panel data regression analysis using EViews 13 software reveals that both PAD and Balancing Funds have a positive and statistically significant effect on HDI. Specifically, a 1-unit increase in PAD raises the HDI by 3.42 points, while Balancing Funds contribute 1.78 points. However, these variables explain only 52.87% of the variability in HDI, indicating the need to consider additional determinants such as governance quality and infrastructure development. [ABSTRACT FROM AUTHOR]
ISSN:28076494