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"[ABSTRAKMakalah ini menyelidiki apakah kualitas tata kelola (governance)pemerintahan berkorelasi dengan pembangunan ekonomi di tingkat Kabupaten diIndonesia. Menggunakan analisis cross-sectional, penelitian ini meneliti dampakdari indikator pemerintahan di kabupaten terhadap kinerja ekonomi. Selain itu,metode variabel instrumental digunakan untuk menyelidiki masalah kausalitasantara tata kelola dan pertumbuhan ekonomi. Penelitian ini menggunakan surveiTata Kelola Ekonomi Daerah sebagai variabel untuk tata kelola pemerintahan danjumlah kecamatan sebagai variabel instrumental. Temuan utama penelitian iniadalah bahwa interaksi pemerintah dengan pihak swasta, biaya transaksi dan tatakelola infrastruktur merupakan faktor penting untuk meningkatkan kinerjaekonomi. Penelitian ini juga menemukan indikasi bahwa terdapat hubungan positifdari tata kelola terhadap kinerja ekonomi.

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ABSTRACTThis paper explore whether the quality of governance correlate with economicdevelopment at local level in Indonesia. Using cross-sectional analyses, this studyexamines the impacts of governance indicators on districts economic performance.In addition, instrumental variable method is use to investigate the causality issuebetween governance and economic growth. This study utilizes the Local EconomicGovernance survey as the variable for governance and the number of subdistrictsas the instrumental variable. The main finding is that that government-businessinteraction, transaction costs and infrastructure governance are important factors toincrease economic performance. This study also finds tentative evidence of thepositive relationship from economic governance to economic performance, This paper explore whether the quality of governance correlate with economicdevelopment at local level in Indonesia. Using cross-sectional analyses, this studyexamines the impacts of governance indicators on districts economic performance.In addition, instrumental variable method is use to investigate the causality issuebetween governance and economic growth. This study utilizes the Local EconomicGovernance survey as the variable for governance and the number of subdistrictsas the instrumental variable. The main finding is that that government-businessinteraction, transaction costs and infrastructure governance are important factors toincrease economic performance. This study also finds tentative evidence of thepositive relationship from economic governance to economic performance]"

"The Inpres program basically is one of the Government's effort to strengthen the capacities of the regional Government to plan and implement development projects which met the needs of the region by providing direct access to local agencies to substantial public resources, as well as to narrow the gap of economic development between regions. However, the diversity of regional economic activity in Indonesia have caused a large variations in the region's ability to make the most of Inpres program. It is obvious that the diversity between regions could be a simple explanation of why the `effectiveness' of Inpres program varies across regions, that is, of why Inpres gives a substantial stimulus to development in some regions and has a nautral or even negative effect in other. That is the principal focus of this study, which aims to analyzes how far the Inpres program could achieve its objective effectively. According to the Paul Mosley's model, it is substantiated that the effectiveness of aid such as Inpres program is determined by several ultimates parameters which are related to the share of aid allocated to recurrent budget, the side-effect of aid on private sector and the ratio of changes in output to changes in private capital stocks and government capital stocks. Empirically, the study shows that Inpres program has some kind of straightforward `leverage' on regional economic development especially for the regions with high rate of growth. In other words, the effectiveness of aid is high in the region with high growth rate."

"Studi ini menginvestigasi tentang pengaruh proksi keterbukaan perdagangan yaitu perdagangan per PDB dan FDI inflow & outflow per PDB terhadap pertumbuhan pendapatan riil per kapita. Studi ini menggunakan data tahun 2005-2012 di ASEAN plus six (Australia, China, India, Japan, Korea, dan New Zealand). Metode yang digunakan adalah GLS efek tetap. Hasilnya ditemukan bahwa proksi keterbukaan perdagangan yaitu perdagangan per PDB dan FDI inflow & outflow per PDB secara positif dan signifikan mempengaruhi pertumbuhan pendapatan riil per kapita.

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This study investigates the impact of trade openness; trade per GDP and FDI inflow & outflow per GDP proxy to the growth of real income per capita. This study used data from 2005-2012 for 16 ASEAN members plus six countries (Australia, China, India, Japan, Korea, and New Zealand). The method used in this study is fixed effect GLS. The result shows that trade openness proxy; trade per GDP and FDI inflow & outflow per GDP positively and significantly affecting growth of real income per capita."