THE EFFECT OF TRANSFER FUNDS ON DISTRICT/MUNICIPALITY DEVELOPMENT PERFORMANCE IN WEST JAVA PROVINCE INDONESIA

Regional autonomy intended to enhance the level of community involvement in development process, distribution outcomes fairly, and pay more attention potential diversity region. The implementation regional will further accelerate achievement goals because local governments have authority plan programs that are tailored needs by taking into account area. Development performance is variable used measure results process. This study expects examine variables per capita (GDP) gross domestic product with constant prices 2010, open unemployment rate (%), poverty human index (HDI), Gini index. objectives present study, reveal effect intergovernmental transfers on district/municipality West Java Province, transfer funds not directly, but through spending. Panel data regression analysis analyze indirect performance. show general block grants (Dana Alokasi Umum-DAU) a fund has greatest impact development, while terms expenditure, which most significant education spending followed goods services.Keywords: performance, transfers, panel regression, autonomy.JEL Classifications: C33, H11, H50, H76DOI: https://doi.org/10.32479/ijefi.9399