Factors Affecting Regional Fiscal Capacity In Ambon City

Authors

  • Sherly Ferdinandus University of Pattimura, Indonesia
  • Dientje Rumerung University of Pattimura, Indonesia
  • Muhammad Bugis University of Pattimura, Indonesia
  • Mohamad. R. Serang University of Pattimura, Indonesia
  • Amin University of Pattimura, Indonesia

DOI:

https://doi.org/10.24256/kharaj.v7i4.8247

Keywords:

Regional original income, economic growth, population, regional fiscal capacity

Abstract

This study aims to analyze the factors that influence Regional Fiscal Capacity (KFD) in Ambon City.

The study used secondary time series data for 10 years (2014–2023) in Ambon City. The analysis method used was Multiple Linear Regression with the dependent variable (Y) being the Fiscal Capacity Index, and the independent variables being Regional Original Income (PAD) (X1), Economic Growth Rate (X2), and Population (X3). Key Results: The results of the regression analysis showed that the independent variables PAD (X1), Economic Growth Rate (X2), and Population (X3) did not have a significant effect on the Regional Fiscal Capacity of Ambon City.

Implications/ConsequencesAruan:TeamThis study provides an empirical contribution because it differs from general assumptions and previous research (state of the art), which often shows a positive relationship. These results highlight a unique problem or phenomenon in Ambon City, where the theoretically common factors driving fiscal capacity (PAD, economic growth, population) are not working effectively.

References

Abd. Basir (2009) Analysis of Factors Influencing Fiscal Capacity in the City of Pare-Pare Master's Thesis, Hasanudin University, Makassar

Adi,GR (2018). Analysis of Fiscal Capacity and Financial Performance of Provincial Governments

MallIndonesian Journal of Accounting and Finance, 15(1), 1-15

Alensina,A. & Perotti, R. (1995). Fiscal Expansions and Adjustments in OECD Countries.

Economic Plicy, 10(21), 207-248.

Amelia, F. & Sugeng, A. (2019). The Influence of Regional Revenue, Balancing Funds, and Modal Expenditures on Regional Fiscal Capacity in North Sumatra. Journal of Accounting and Business, 12(2), 125-139.

ANi Sri Rahayu (2010) Introduction to Fiscal Policy, Publisher PT. Bumi Aksara Yogyakarta Bird, Richard M and Francois Vaillancour (2000) Fiscal Decentralization in Developing Countries, PT Gramedia Pustaka, Jakarta.

Bahl, R. W., & Linn, J. F. (1992). Urban Public Finance in Developing Countries. Oxford

UUniversity Press.

Davey, Kenneth (1989), Indonesian Government Finance. FE UI Publishing Institute, Jakarta. Davoodi, HR, & Zou, H. (1998). Fiscal Decentralization and Economic Growth: A Cross-

Country Analysis. Journal of Urban Economics, 43(2), 244-257.

Goddess, NA & Kurniaan, A. (2020). Analysis of Factors Affecting Fiscal Capacity

PemeRegional Government of Palu City. Journal of Economics and Business, 18(3). 201-215.

Fajri, R., & Handayani, M. (2021). The Effect of Economic Growth, Regional Revenue and Balancing Funds on Fiscal Capacity in Jambi Province, Journal of Development Accounting, 7(2), 110-120.

Feld, L. P., & Baskaran, T. (2012). Fiscal Decentralization and Economics A Review of the

Evidence. Journal of Economic Surveys, 26(1), 58-81. Oates, W.E. (197). Fisca Federaaaism. Harcourt Brace Jovanovich.

GUnawan, B. & Ramadhani, S. (2007). The Influence of GRDP, PAD, and Balancing Funds on

KaFiscal Capacity of Semarang City Government. Journal of Development Economics, 15(2),

87-100.

Guritnomang Koesoebroto (2005) Public Economics BPFE Yogyakarta.

HaNdayani, M., & Susanto, R. (2018). Analysis of Factors Affecting Capacity

PhysicsRegional Economics in Ambon City. Journal of Regional Economics, 10(1). 45-5

Downloads

Published

2025-11-04

How to Cite

Sherly Ferdinandus, Rumerung, D., Muhammad Bugis, Mohamad. R. Serang, & Amin. (2025). Factors Affecting Regional Fiscal Capacity In Ambon City. Al-Kharaj: Journal of Islamic Economic and Business, 7(4). https://doi.org/10.24256/kharaj.v7i4.8247

Issue

Vol. 7 No. 4 (2025): All articles in this issue include authors from 3 countries of origin (Indonesia, Turkey and Timur Leste)

Section

Articles

Citation Check

License

Copyright (c) 2025 Sherly Ferdinandus, Dintje Rumerung, M Bugis, Mohamad. R. Serang, Amin

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.