Research Article
Efficiency of Local Government Capital Expenditure
@INPROCEEDINGS{10.4108/eai.27-7-2021.2316830, author={Deky Aji Suseno and Amalia Rahmadhani and Suwartiningsih Suwartiningsih and Rosi Hanafiah Al Azizah}, title={Efficiency of Local Government Capital Expenditure}, proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2022}, month={3}, keywords={efficiency local government government spending capital expenditure dea}, doi={10.4108/eai.27-7-2021.2316830} }- Deky Aji Suseno
Amalia Rahmadhani
Suwartiningsih Suwartiningsih
Rosi Hanafiah Al Azizah
Year: 2022
Efficiency of Local Government Capital Expenditure
ICE-BEES
EAI
DOI: 10.4108/eai.27-7-2021.2316830
Abstract
This study aims to analyze the efficiency level of local government spending in generating local revenue and investment in the region. Capital expenditure which consists of capital expenditure and operating expenditure as input variable and income and regional investment as output variable. Data Envelopment Analysis is used as a method for measuring efficiency because the tool can accommodate several input variables and several output variables. The results of the study show that the level of efficiency of capital expenditure in the districts/cities in the province of Central Java varies widely. The results also show that many areas have not yet reached the maximum level of efficiency. Based on the classification of the amount of expenditure and the level of efficiency score, districts/ cities can be grouped into four categories. The first category is the area with the amount of capital expenditure and efficiency level above average. The second category is the area with the amount of capital expenditure below the average but the level of efficiency above the average. The third category is the area with the amount of capital expenditure and the efficiency level below the average and the last category is the area with the amount of capital expenditure below the average but the level of efficiency above the average.