Konvergensi Pengeluaran Pemerintah Antar Kabupaten/kota di Jawa Timur

This study analyzes the convergence in local government expenditure among local governments in East Java for the periods 2000-2005. The research question in this study is whether the local governments expenditure are convergence or not. We are applying the methodology of convergent model by analyzing the technique of Generalized Least Squares (GLS) for the pool data.This study concludes there is an empirical evidence of convergence in local government expenditure among local government of East Java for the periods of 2000-2005. This finding shows how regions with lower government expenditure per-capita in 2000 grow faster than regions with higher ones. Additionally, there is competition among the region in providing public utilities and services.Keywords: Convergence, Growth, Government Expenditur