Authors : Abdiyanto , Suwardi Lubis, Syaad Afifudin and Rujiman
Abstract: Resources are scare and the main challenges faced by local governments in developing countries are to allocate effectively. This challenge relates to government’s effort to reduce regional inequality. This study examined the relationship between priority-based budgeting policy and local growth imbalance by using economic structure transformationas the intervening variable. Researchers employed multivariate regression and path-analysis to examine the relationship. The results revealed that the priority-based budgeting affected local inequality significantly through structural transformation. It explicitly demonstrates that the prioritized government allocation in education, health and education plays an important role to strengthen economic transformation leading to reduce regional divergence.
Abdiyanto , Suwardi Lubis, Syaad Afifudin and Rujiman , 2015. Priority-Driven Budgeting Policy and Regional Inequality: The Intervening Effect of Economic Structure Transformation. International Business Management, 9: 1263-1273.