Description
Title: Are Capital Expenditures, Grants, and Social Assistance Used by Regional Heads During Elections?
Abstract: The claimed existence of political budget cycles in Indonesian local governments is examined empirically in this study. This quantitative study focuses on capital spending, grant spending, and social assistance spending during election years and the year before elections using panel data. The sample is a local government that underwent two election cycles from 2012 to 2018 and was chosen using the purposive sampling method. The sample consists of 636 observational data points on social assistance and 1306 observational data points on capital expenditures and grants. Multiple regression analysis is used in the study to test its main hypothesis. The findings show that the election year has no impact on social assistance but has a negative impact on grants and a positive impact on capital expenditures. Capital expenditures are negatively impacted by the election year, whereas grants and social assistance are positively impacted. Social assistance is positively impacted by the incumbent, but grants and capital expenditures are unaffected. Transfers affect grants positively, capital expenditures negatively, and social assistance not at all. This study does not support the interactions between the incumbent and the election year and year before.
Keywords: political budget cycles; election; incumbent; regional head
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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