Data Description DATA ANALYSIS AND DISCUSSION

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CHAPTER IV DATA ANALYSIS AND DISCUSSION

This chapter explains about analysis results toward data which used in this research and analysis results discussion.

A. Data Description

The analysis targets of this study are 33 provinces in the Indonesian’s local governments which consist of 369 regencies and 86 municipalities http:www.djpkpd.or.id while the sample is regencies and municipalities in all provinces which have completed data. We analyzed data for year 2006 only. While a few preceding studies tried to analyze the time-series analysis focusing on specific events related to local governments, but in this study tries to analyze of data in year 2006 by cross-section analysis. According to Undang-Undang No. 34 year 2004 about financial balance between central government and local government, the relative fiscal importance between a central government and a local government has been kept to a steady level. However, such analysis is expected to draw a significant result because there are large differences between inter-regions relatively. The scope of our study limited in year 2006 because it was the latest period available to get data and the maximum accumulation of experience on a local self-governing system after the implementation of Undang- Undang No. 34 year 2004. lxxii Relate to the availability data and completion data in informing all of points which will be needed, there are only 232 budget realization statements that complete all of information. The descriptive statistics analysis of variables can be checked in Appendix 1 and variables are broadly distributed according to regions. From the descriptive test result can be seen that the total data N taken is 232. The 232 data are tested to fulfill the classical assumption test; unfortunately it failed to fulfill the classical assumption test because of failed in heteroscedasticity test and autocorrelation test. The result of the classical assumption test can be seen in Appendix 2. Then the researcher did logarithm transformation of the 232 data. By using the log data, the classical assumption test is ran later. Therefore it failed to fulfill the classical assumption test again. Heteroscedasticity still occurred and data is not distributed normally. The result of the classical assumption test using log data is revealed in Appendix 3. After the researcher knows that heteroskedasticity still exists and the distribution of data is not normal so that the researcher cuts of data by determining outliers. Indeed the researcher finds some data with extreme value. Fifty five are quitted from sample because of outliers. Finally, by trial and error process, in can be verified that 177 financial statement of regencies and municipalities as a final sample which can be tested in this study. These data and information are retrieved from the website http:www.djpk.or.id , 2006. In addition, other data and information which are taken from published source or combined. Those were directly obtained by officers of local governments. The measurement and patterns of the local original revenue, balance fund, and others revenue as a proxy of fiscal decentralization, lxxiii and public expenditure used the total amount which taken from budget realization statement. The testing for the influence of fiscal decentralization to the public expenditure in local governments was performed by multiple regression analysis. Data processing and analysis were run by SPSS 16.0 for Windows and simple descriptive statistics were calculated using Microsoft EXCEL 2003.

B. Statistical Results and Discussion