The impact of fiscal decentralization on economic growth in Indonesia
Fiscal decentralization was firstly implemented in 2001 and has brought a new era of local autonomy in Indonesia. The objective of fiscal decentralization to local government is to increase the economic growth and public service. This research uses a panel data regression and quadrant analysis metho...
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doaj-4f2e4a79b88e4bbba94d0e56af5520962020-11-25T02:06:22ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2019-10-0111215216010.20885/ejem.vol11.iss2.art39114The impact of fiscal decentralization on economic growth in IndonesiaAri Mulianta Ginting0Muhammad Zilal Hamzah1Eleonora Sofilda2Research Center, Secretary General and Board of Expertise of Indonesia’s Parliament, Jakarta, IndonesiaTrisakti University, Jakarta, IndonesiaTrisakti University, JakartaFiscal decentralization was firstly implemented in 2001 and has brought a new era of local autonomy in Indonesia. The objective of fiscal decentralization to local government is to increase the economic growth and public service. This research uses a panel data regression and quadrant analysis method with the data of cluster districts and cities in Indonesia from 2013 to 2018. Findings/Originality: The panel regression estimation shows that fiscal decentralization has a positive and significant effect on economic growth in all clusters. However, the quadrant analysis results show that on average 86.7% of all clusters districts and cities were in quadrant IV which reflects low fiscal decentralization and low economic growth. The implication of the result is that the government should increases the allocation of capital expenditure in local budget to accelerate local economic growth of the districts/cities in all clusters.https://journal.uii.ac.id/JEP/article/view/12744economic growth, fiscal decentralization, panel data regression |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Ari Mulianta Ginting Muhammad Zilal Hamzah Eleonora Sofilda |
spellingShingle |
Ari Mulianta Ginting Muhammad Zilal Hamzah Eleonora Sofilda The impact of fiscal decentralization on economic growth in Indonesia Economic Journal of Emerging Markets economic growth, fiscal decentralization, panel data regression |
author_facet |
Ari Mulianta Ginting Muhammad Zilal Hamzah Eleonora Sofilda |
author_sort |
Ari Mulianta Ginting |
title |
The impact of fiscal decentralization on economic growth in Indonesia |
title_short |
The impact of fiscal decentralization on economic growth in Indonesia |
title_full |
The impact of fiscal decentralization on economic growth in Indonesia |
title_fullStr |
The impact of fiscal decentralization on economic growth in Indonesia |
title_full_unstemmed |
The impact of fiscal decentralization on economic growth in Indonesia |
title_sort |
impact of fiscal decentralization on economic growth in indonesia |
publisher |
Universitas Islam Indonesia |
series |
Economic Journal of Emerging Markets |
issn |
2086-3128 2502-180X |
publishDate |
2019-10-01 |
description |
Fiscal decentralization was firstly implemented in 2001 and has brought a new era of local autonomy in Indonesia. The objective of fiscal decentralization to local government is to increase the economic growth and public service. This research uses a panel data regression and quadrant analysis method with the data of cluster districts and cities in Indonesia from 2013 to 2018. Findings/Originality: The panel regression estimation shows that fiscal decentralization has a positive and significant effect on economic growth in all clusters. However, the quadrant analysis results show that on average 86.7% of all clusters districts and cities were in quadrant IV which reflects low fiscal decentralization and low economic growth. The implication of the result is that the government should increases the allocation of capital expenditure in local budget to accelerate local economic growth of the districts/cities in all clusters. |
topic |
economic growth, fiscal decentralization, panel data regression |
url |
https://journal.uii.ac.id/JEP/article/view/12744 |
work_keys_str_mv |
AT arimuliantaginting theimpactoffiscaldecentralizationoneconomicgrowthinindonesia AT muhammadzilalhamzah theimpactoffiscaldecentralizationoneconomicgrowthinindonesia AT eleonorasofilda theimpactoffiscaldecentralizationoneconomicgrowthinindonesia AT arimuliantaginting impactoffiscaldecentralizationoneconomicgrowthinindonesia AT muhammadzilalhamzah impactoffiscaldecentralizationoneconomicgrowthinindonesia AT eleonorasofilda impactoffiscaldecentralizationoneconomicgrowthinindonesia |
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1724934425935872000 |