The Effect of Special Allocation Funds on Human Development Index with Stunting Prevalence as a Mediating Variable

An Empirical Study on Districts/Cities in Sulawesi Region (2021–2024)

Authors

  • Fathia Azzahra Madjid Perbanas Institute
  • G. M. Djoko Hanantijo Perbanas Institute
  • Charles Chandra Escala Perbanas Institute
  • Atika Maulidina Ridho Perbanas Institute

Keywords:

Special Allocation Fund, Human Development Index, Stunting, Fiscal Decentralization, Mediation Analysis

Abstract

This study examines the effect of Physical Special Allocation Funds (DAK Fisik) and Non-Physical Special Allocation Funds (DAK Non Fisik) on the Human Development Index (HDI), with stunting prevalence as a mediating variable. Using balanced panel data from 81 districts/cities in Sulawesi during 2021–2024 (324 observations), the analysis employs Fixed Effect Model panel regression and Sobel Test. The results show that DAK Non Fisik significantly reduces stunting prevalence (coefficient = -4.460, p = 0.007) and significantly improves HDI (coefficient = 3.278, p = 0.000), while DAK Fisik shows no significant effect on either variable. Stunting prevalence significantly reduces HDI (coefficient = -0.059, p = 0.044), but does not mediate the relationship between DAK and HDI. These findings highlight the importance of strengthening operational service funding as a more immediate instrument for improving human development outcomes in regions with persistent stunting challenges.

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Published

2026-06-26

Issue

Vol. 4 (2026): The 4th Proceedings of the Perbanas International Seminar on Economics, Business, Management, Accounting and IT

Section

Articles