(THE EMPOWERMENT OF GOVERNMENT EXPENDITURES AND VILLAGER LAND TOWARD THE ESTABLISHMENT OF LOCAL ECONOMIC GROWTH IN 1997-2006 (A Case in District/Municipality Area of East Nusa Tenggara))

Baltasar  Taruma  Djata, SE., M.Sc

ABSTRACT

The urgency of village development by and for villagers has become the agreement between the villagers and development designers at national or central level. In order to create such changes economic factors, among others, involve government expenditure and total land acreage that farmers’ own. It is assumed that the mix of government expenditure and land acreage that villagers possess can support local economic growth.

Data collected involved annual secondary data (time series) on economic growth/Gross Domestic Product (GDP), constant ADH, routine expenditure, development expenditure and total acreage of individual district in East Nusa Tenggara Timur (NTT) from 1997-2006.

The common effect model was utilized in data regression panel. Based on analysis result using the aforementioned model it was identified that routine expenditures of West Sumba, East Sumba, Kupang, TTS (South Central Timor), TTU (North Central Timor), Belu, Alor, Flotim (East Flores), Sikka, Ende, Ngada, and Manggarai districts did not provide significant effects on local economic growth. While development expenditures with no significant effect were identified in Kupang, TTS, TTU, Belu, Alor, Flotim, Sikka, Ende, Ngada, and Manggarai districts. Development expenditures with significant effects on local economic growth were identified in 2 (two) districts, namely West Sumba and East Sumba districts. In terms of villagers total land acreage variable, those of West Sumba, East Sumba, Kupang, TTS, TTU, Belu, Alor, Flotim, Sikka, Ende, Ngada, and Manggarai districts had no significant effect on local economic growth.

Keywords: Economic growth, Routine expenditure, Development expenditure, Land Data panel