DID THE SPECIAL AUTONOMI FUND TRANSFER AFFECT THE INTER-REGIONAL ECONOMIC EQUALITY IN ACEH?

Tajul 'Ula

doi:10.47498/dicis.v3i.2423

Tajul 'Ula Institut Agama Islam Negeri Langsa

DOI: https://doi.org/10.47498/dicis.v3i.2423

Keywords: Special Autonomy Fund, Income Disparities, Sigma, Beta Convergency

Abstract

This study aims to analyze the convergence of per capita income of districts/cities in Aceh Province after the transfer of special autonomy funds that has taken place during the period 2008 to 2022. The method used is sigma convergence with dispersion analysis, coefficient of variation and beta convergence with the Arellano-Bond General Moment Method estimation model approach or First Difference GMM (FD-GMM). The results of the sigma convergence analysis revealed that there was a convergent trend throughout 2008 to 2019 even though in the Covid-19 period the 2019-2022 period slowly showed divergence. Meanwhile, based on beta convergence analysis, it shows that there is no GDP-per capita convergence, but the divergence shown by the value of the GDP-per capita coefficient of the initial year which is marked / positive slope and the variable of special autonomy funds shows negative and significant effects. These results indicate that the special autonomy fund has not contributed significantly to equity in Aceh Province. This is because budget management is still not good so that equity in Aceh Province is still constrained. Evaluation of the use of special autonomy funds must be carried out so that the use and management of these funds can be realized on target in accordance with the target considering that the transfer period of Aceh special autonomy funds will end in 2027.

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