Perpustakaan Digital ITB

The new paradigm in village development which is stated in Law Number 6 of 2014 concerning Villages emphasizes that village development is carried out by the village on the basis of village authority. The government includes a fiscal transfer called the Village Fund in order to finance the village's authority. The study of the impact of the Village Fund has been analyzed from various types of research. However, quantitative research on the impact of the Village Fund on village development is still limited due to the unavailability of development indicator data at the village level. The measuring tool for village progress in the form of the Village Development Index (IPD) is a good measurement in mapping village development, but the indicators forming the IPD do not specifically consider village authority so they cannot measure village development based on village authority and village development improvements cannot be attributed to the Village Fund. Therefore, the purpose of this study is to measure the effect or impact of the Village Fund on village development indicators in West Java. This study employs a quasi-experimental design in measuring the effect or impact. This study employs the difference-in-differences (DiD) method to estimate the value of the effect of the Village Fund on indicators of village development outcomes. The parallel trend assumption, which is a prerequisite for producing an unbiased effect, cannot be carried out in this study. This is because the pre-treatment data only consists of 1 (one) period. Therefore the propensity score weighting (PSW) was analyzed on the covariates before measuring the impact with DiD instead of assuming parallel trends. The time period used in this study is the period in 2014 as the baseline before the implementation of the Village Fund and 2018 as the follow-up period after the implementation of the Village Fund. The treatment groups in this study were the village as the target group for the Village Fund and the kelurahan as the comparison group. The outcome proposed in this study is the village development iv outcomes which consist of Development Indicators Based on Village Authority and Village Facilities Indicators. The development indicator parameter based on village authority is the ratio of infrastructure to population which includes Posyandu, Polindes, Poskesdes and village markets. While the indicator parameters for village facilities are the ratio of infrastructure to population which includes polyclinics, doctor's practices, midwives' practices, pharmacies, minimarkets, industry, grocery stores, doctors, dentists, midwives and other health workers (pharmacist, nurse, etc.). The results of the estimation of the effect or impact of the Village Fund on village development outcomes in West Java show that there is no significant difference between the changes that occurred between 2014 and 2018 in the village group and the changes that occurred between 2014 and 2018 in the urban village group. Or in other words, village development after the implementation of the Village Fund is no different from the development that occurs in the kelurahan (without the Village Fund). so it can be concluded that the Village Fund has no impact on increasing village development.