The Impact of Village Fund Management, Cash-Intensive Work, and Community Participation on The Rate of Village Economic Growth Through The Development of village-Owned Enterprises (BUMDes) in Bone Regency

This study examines the integrative framework of rural development in Indonesia, focusing on the interplay between Village Fund management, labor-intensive employment programs (Padat Karya Tunai), community participation, and the mediating role of Village-Owned Enterprises (BUMDes) in promoting village economic growth. Using a quantitative approach with Structural Equation Modeling (SEM), data were collected from 372 village respondents across multiple regions to test the direct and indirect relationships among these variables. The findings reveal that Village Fund management, participatory governance, and labor mobilization each have significant positive effects on rural economic outcomes. More importantly, the study confirms the strategic mediating role of BUMDes in transforming fiscal and labor inputs into productive development outputs. The model supports the theory of institutional complementarity, suggesting that budgetary decentralization yields better results when accompanied by strong local institutions and active citizen engagement. Despite these positive links, challenges remain, particularly in areas such as entrepreneurial capacity, financial planning, and governance quality within BUMDes' operations. Therefore, policy design must integrate fiscal transfer mechanisms with institutional strengthening and participatory frameworks to ensure inclusive and sustainable rural development.

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Publication Details

Journal
International Journal of Accounting and Economics Studies
Published
2025-08-16
DOI
https://doi.org/10.14419/3amrp448
Citations
1
Primary Topic
Local Governance and Development
Type
article
Field-Weighted Citation Impact
6.72
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article

The Impact of Village Fund Management, Cash-Intensive Work, and Community Participation on The Rate of Village Economic Growth Through The Development of village-Owned Enterprises (BUMDes) in Bone Regency

Haeril Haeril, Nurdin Brasit, Idayanti Nursyamsi, Jusni Jusni
1 citations
International Journal of Accounting and Economics Studies
Local Governance and Development
6.72
article

The Impact of Village Fund Management, Cash-Intensive Work, and Community Participation on The Rate of Village Economic Growth Through The Development of village-Owned Enterprises (BUMDes) in Bone Regency

Haeril Haeril, Nurdin Brasit, Idayanti Nursyamsi, Jusni Jusni
article en
1 citations

Abstract

This study examines the integrative framework of rural development in Indonesia, focusing on the interplay between Village Fund management, labor-intensive employment programs (Padat Karya Tunai), community participation, and the mediating role of Village-Owned Enterprises (BUMDes) in promoting village economic growth. Using a quantitative approach with Structural Equation Modeling (SEM), data were collected from 372 village respondents across multiple regions to test the direct and indirect relationships among these variables. The findings reveal that Village Fund management, participatory governance, and labor mobilization each have significant positive effects on rural economic outcomes. More importantly, the study confirms the strategic mediating role of BUMDes in transforming fiscal and labor inputs into productive development outputs. The model supports the theory of institutional complementarity, suggesting that budgetary decentralization yields better results when accompanied by strong local institutions and active citizen engagement. Despite these positive links, challenges remain, particularly in areas such as entrepreneurial capacity, financial planning, and governance quality within BUMDes' operations. Therefore, policy design must integrate fiscal transfer mechanisms with institutional strengthening and participatory frameworks to ensure inclusive and sustainable rural development.

International Journal of Accounting and Economics StudiesVol. 12(4)
Hasanuddin University (ID)
Openalex Percentile: Top 4%
Local Governance and Development
6.72
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