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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
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Volume 10 Issue 16 pp. 3975-3980 , 2020

Effects of fiscal decentralization on economic growth and human development index in the Indonesian local governments Pages 3975-3980 Right click to download the paper Download PDF

Authors: Nahu Daud, Rusman Soleman

DOI: 10.5267/j.msl.2020.7.012

Keywords: Fiscal decentralization, Economic growth, Human development index

Abstract: The implementation of regional autonomy has implications for the transfer of authority between the center and the regions in various fields. The existence of regional autonomy will result in decentralization which involves the management of regional finances, economic planning, including arranging regional development programs and other plans delegated from the center to the regions. The purpose of this study was to examine the effect of fiscal decentralization on economic growth and the index of human development in districts and cities in North Maluku Province. The population of this study consisted of 7 districts and 2 cities. The data is secondary data for the period 2011 to 2015, sourced from the Central Statistics Agency (BPS) Jakarta, districts and cities in North Maluku Province, published. The collected data were analyzed using path analysis techniques using the SPSS program package. The results of the study indicate that the effect of fiscal decentralization on economic growth had a positive path coefficient with a level of probability which was not significant. This shows that hypothesis one which states that fiscal decentralization has a significant effect on the economic growth of districts and cities in North Maluku Province. These results suggest that the higher the fiscal decentralization, the higher the economic growth. The effect of fiscal decentralization on the human development index has a positive path coefficient with a significant level of probability. This implies that the higher the fiscal decentralization, the higher the human development index. The effect of economic growth on the human development index has a positive coefficient with a significant level of probability. These results indicate that the higher the economic growth, the higher the index of human development.

How to cite this paper
Daud, N & Soleman, R. (2020). Effects of fiscal decentralization on economic growth and human development index in the Indonesian local governments.Management Science Letters , 10(16), 3975-3980.

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Journal: Management Science Letters | Year: 2020 | Volume: 10 | Issue: 16 | Views: 1435 | Reviews: 0

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