Growing Science » Management Science Letters » Effects of fiscal decentralization on economic growth and human development index in the Indonesian local governments

Journals


MSL Volumes


Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
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.

Refrences
Bird, R. M., & Vaillancourt, F. (2000). Fiscal decentralization in developing countries. Jakarta: PT Gramedia Pustaka Utama.
Brata, A. G. (2005). Local public sector investment, Human Development and Poverty. Atmajaya University Research In-stitute.
Braun, J. V., & Grote, U. (2000). Does Fiscal Decentralization Serve the Poor. In IMF Conference on Fiscal Decentraliza-tion, Center for Development Research (ZEF-Bonn), Washington, DC.
Chenery, H., Ahluwalia, M. S., Duloy, J. H., Bell, C. L. G., & Jolly, R. (1974). Redistribution with growth; policies to im-prove income distribution in developing countries in the context of economic growth. Oxford University Press.
Cherniavskii, A., & Vartapetov, K. (2005). Fiscal decentralization and local government in the reform period. Problems of Economic Transition, 47(11), 18-36.
Davoodi, H., & Zou, H. F. (1998). Fiscal decentralization and economic growth: A cross-country study. Journal of Urban Economics, 43(2), 244-257.
Ministry of National Development Planning / National Development Planning Agency (Bappenas). (2007). Report on the progress of Indonesia's 2007 millennium development goals. Jakarta: Ministry of National Development Planning / National Development Planning Agency (Bappenas).
Musgrave, R. A. (1985). A brief history of fiscal doctrine. In Handbook of public economics (Vol. 1, pp. 1-59). Elsevier.
Rappaport, J. (1999). Local growth empirics. CID Working Paper Series 1999.23, Harvard University, Cambridge, MA, July 1999
Seers, D. (1970). The meaning of development. Revista Brasileira de Economía, 24(3), 29-50.
Sidik, M. (2002). Central and regional financial balance as the implementation of fiscal decentralization. In A Year Semi-nar on the Implementation of Regional Autonomy Policy in Indonesia, Yogyakarta.
Streeten, P., Burki, S. J., Haq, U., Hicks, N., & Stewart, F. (1981). First things first: meeting basic human needs in the de-veloping countries.
Suharto, E. (2005). Building communities, empowering people: Strategic studies of social welfare development and social work. Refika Aditama.
Tadjoeddin, M. Z., Suharyo, W. I., & Mishra, S. (2001). Regional disparity and vertical conflict in Indonesia. Journal of the Asia Pacific Economy, 6(3), 283-304.
World Bank. (2003). World Development Report 1999/2000. Washington, DC: World Bank.

Journal: Management Science Letters | Year: 2020 | Volume: 10 | Issue: 16 | Views: 1459 | Reviews: 0

Related Articles:

Add Reviews

Name:*
E-Mail:
Review:
Bold Italic Underline Strike | Align left Center Align right | Insert smilies Insert link URLInsert protected URL Select color | Add Hidden Text Insert Quote Convert selected text from selection to Cyrillic (Russian) alphabet Insert spoiler
Security Code: *

® 2010-2024 GrowingScience.Com