Economic growth is an important indicator of the success of development. The ability of resources is a determining factor driving economic growth. Belu Regency is a regency in East Nusa Tenggara Province, located on the Indonesia-Timor Leste border, has economic and political strategic value. Human resources, natural resources and the budget are the real sector of the economy in driving economic growth. The research objective was to analyze the effect of resources on the economic growth of Belu district. The study was conducted using secondary data and SmartPLS was the analysis tool. The results of the study, the relationship of natural resources directly with welfare is negative and will be positive when the indirect relationship through the budget. The direct and indirect relationship of human resources with welfare through the budget is positive, but the direct value relationship is smaller when compared to the indirect relationship. This shows that the budget that is formed from the wealth of natural resources and human resources is an important factor in creating public welfare as measured through economic growth. Budgets sourced from local and central government are increasing every year. The creation of the government and elements of society make the most of resources. The attention of the central government through balancing funds is very high. This is because Belu district located on the Indonesia-Timor Leste border is a macroeconomic picture of the border country
North Central Timor Regency is one of the regencies in the border region of the Republic of Indonesia-Timor Leste. This region is still categorized as an underdeveloped region with a fairly high percentage of poverty. The most reliable source of regional revenue comes from potential regional taxes and levies. Therefore, the purpose of this study is to determine the regional financial performance when viewed from the ratio of regional financial independence, the ratio of regional financial dependence and fiscal decentralization. Some of the variables used for data analysis needs are the value of PAD, Balancing Funds and Capital Expenditures from 2001-2018 obtained from the publications of the Central Statistics Agency. The results showed thatRegional financial capacity seen from the regional financial independence of North Central Timor Regency in financing its regional needs in the context of implementing regional autonomy is still low and dependence on other regions through the central government is very high.
Timor-Leste’s cross-border trade involves the people of the two countries on the border. Cross-border trade, which was originally facilitated by the government of Indonesia and East Timor by providing a common border market, has been closed since the Covid-19 pandemic. As a consequence, illegal transaction activities continue around the border with an unconventional approach and run outside the control of the state. The study aims to determine the effect of transaction costs, institutional changes, black markets on the welfare of people in border areas directly or indirectly. Explanatory research is a method approach used with PLS (Partial Least Square). The results of the study show that the direct relationship between constructs is positive, except that the transaction cost on welfare is negative. The indirect effect of transaction costs and institutional changes on welfare through the black market is positive. The factor of low transaction costs and changes in people’s behavior and income causes the trading process to be outside the government’s permit. Another supporting factor is the ease of accessibility in the form of proximity to mileage, means of transportation, and the similarity of economic needs. Black market practice is unlawful, and the state loses revenue. Keywords: Transaction Cost, Institutional Change, Black Market, WelfareJEL Classification: D60, F10
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