EFEK REFORMASI BIROKRASI TERHADAP KEMAJUAN EKONOMI DAERAH

Local economic activity tends to be influenced by the capabilities of the bureaucracy. If the bureau cracyisable to implement good governance principles and it has high concern on public service to create citizen welfare, so that the trend of local economic activity tends to grow highly. Furthermore, if the bureaucracy can successively encourage local economic activity,the local development and public welfare may relatively increase. Therefore, the efforts to reform the local bureaucracy will drive local development through trickle-down effect. This study uses descriptive quantitative approach with linear regression analysis on cross-section data from 99 local governments in 2014 which are considered as pilot projects. The result is that the bureaucratic reform contributes apositive and statistically significant impact on local economy. Two of three components of the bureaucratic reform that are assessed, namely Accountability Performance of Local Government (AKIP) and Public Services, bring statistically-significant and positive impact to the localrevenue (PAD), and each point of PAD's rise tends to create a statistically significant and positive affect on local economic growth by 1.1%