THE ANALYSIS OF DETERMINANT OF LOCAL GOVERNMENT EXPENDITURE IN BENGKULU PROVINCE

The objective of this the research is to analyse effect of central government transfer, population, Regional Gross Domestic Product (RGDP) and education to local government expenditure in Bengkulu province. This research used secondary data which were collected from BPS and www.djpk.depkeu.co.id. Data panels of 8 districts and 1 city in Bengkulu Province from 2004 up to 2007 are used. The data were analyzed using pooled data regression with fixed effect model. The result of the study shows that the central government transfer, population, and RGDB has a positive and significant effect to the local government expenditure, while the education hasn’t significant effect to the local government expenditure