Rural development from village funds, village-owned enterprises, and village original income
This study investigates whether village funds, village-owned enterprises (henceforth, BUMDes), and village original income in Indonesia (PADes) enhance rural development. We employ three empirical methodologies to analyze data collected from 361 districts across Indonesia. These methods encompass cr...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-12-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853123002615 |
| _version_ | 1827584905472638976 |
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| author | Rian Hilmawan Yesi Aprianti Diem Thi Hong Vo Rizky Yudaruddin Ratih Fenty Anggraini Bintoro Yuli Fitrianto Noor Wahyuningsih |
| author_facet | Rian Hilmawan Yesi Aprianti Diem Thi Hong Vo Rizky Yudaruddin Ratih Fenty Anggraini Bintoro Yuli Fitrianto Noor Wahyuningsih |
| author_sort | Rian Hilmawan |
| collection | DOAJ |
| description | This study investigates whether village funds, village-owned enterprises (henceforth, BUMDes), and village original income in Indonesia (PADes) enhance rural development. We employ three empirical methodologies to analyze data collected from 361 districts across Indonesia. These methods encompass cross-section regression, Difference-in-Difference (DID) technique, and Structural Equation Model (SEM)-based mediation analysis. The findings show that village funds positively and significantly impact rural development (measured using the village development index). However, the impact of BUMDes on rural development shows weak evidence. The quasi-experiment also reveals that districts with higher funding for their villages do not experience greater improvements in the village development index between 2016 and 2020. Furthermore, our study indicates that PADes play a crucial role in determining rural development, either directly or as a mediator for village funds and BUMDes. Policymakers should monitor the allocation of village funds to evaluate future allocation policies. Additionally, PADes performance is important for determining village fund transfers and development progress. |
| first_indexed | 2024-03-08T23:38:01Z |
| format | Article |
| id | doaj.art-aea2d35fe039497fa34a1306a07b190b |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-08T23:38:01Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-aea2d35fe039497fa34a1306a07b190b2023-12-14T05:22:41ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312023-12-0194100159Rural development from village funds, village-owned enterprises, and village original incomeRian Hilmawan0Yesi Aprianti1Diem Thi Hong Vo2Rizky Yudaruddin3Ratih Fenty Anggraini Bintoro4Yuli Fitrianto5Noor Wahyuningsih6Faculty of Economics and Business, Mulawarman University, IndonesiaFaculty of Economics and Business, Mulawarman University, IndonesiaThe Business School, RMIT University, VietnamFaculty of Economics and Business, Mulawarman University, Indonesia; Corresponding author.Regional Research and Innovation Agency, East Kalimantan Province, IndonesiaRegional Research and Innovation Agency, East Kalimantan Province, IndonesiaRegional Research and Innovation Agency, East Kalimantan Province, IndonesiaThis study investigates whether village funds, village-owned enterprises (henceforth, BUMDes), and village original income in Indonesia (PADes) enhance rural development. We employ three empirical methodologies to analyze data collected from 361 districts across Indonesia. These methods encompass cross-section regression, Difference-in-Difference (DID) technique, and Structural Equation Model (SEM)-based mediation analysis. The findings show that village funds positively and significantly impact rural development (measured using the village development index). However, the impact of BUMDes on rural development shows weak evidence. The quasi-experiment also reveals that districts with higher funding for their villages do not experience greater improvements in the village development index between 2016 and 2020. Furthermore, our study indicates that PADes play a crucial role in determining rural development, either directly or as a mediator for village funds and BUMDes. Policymakers should monitor the allocation of village funds to evaluate future allocation policies. Additionally, PADes performance is important for determining village fund transfers and development progress.http://www.sciencedirect.com/science/article/pii/S2199853123002615Village fundsRural developmentVillage-owned enterprisesVillage original income |
| spellingShingle | Rian Hilmawan Yesi Aprianti Diem Thi Hong Vo Rizky Yudaruddin Ratih Fenty Anggraini Bintoro Yuli Fitrianto Noor Wahyuningsih Rural development from village funds, village-owned enterprises, and village original income Journal of Open Innovation: Technology, Market and Complexity Village funds Rural development Village-owned enterprises Village original income |
| title | Rural development from village funds, village-owned enterprises, and village original income |
| title_full | Rural development from village funds, village-owned enterprises, and village original income |
| title_fullStr | Rural development from village funds, village-owned enterprises, and village original income |
| title_full_unstemmed | Rural development from village funds, village-owned enterprises, and village original income |
| title_short | Rural development from village funds, village-owned enterprises, and village original income |
| title_sort | rural development from village funds village owned enterprises and village original income |
| topic | Village funds Rural development Village-owned enterprises Village original income |
| url | http://www.sciencedirect.com/science/article/pii/S2199853123002615 |
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