The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia
The issue of poor local government capacity has been considered one of the problems impeding the implementation of decentralization, especially in developing countries. This study addresses this issue in the case of Indonesia, a country that has implemented massive decentralization (administrative,...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/12/323 |
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| author | Arif Setiawan Prijono Tjiptoherijanto Benedictus Raksaka Mahi Khoirunurrofik Khoirunurrofik |
| author_facet | Arif Setiawan Prijono Tjiptoherijanto Benedictus Raksaka Mahi Khoirunurrofik Khoirunurrofik |
| author_sort | Arif Setiawan |
| collection | DOAJ |
| description | The issue of poor local government capacity has been considered one of the problems impeding the implementation of decentralization, especially in developing countries. This study addresses this issue in the case of Indonesia, a country that has implemented massive decentralization (administrative, fiscal, and political) over the last two decades. The study aims to provide empirical evidence for the impact of local government capacity on public service delivery in the decentralization regime. Local government capacity is measured based on a policy capacity framework at the organizational level that includes three types of capacities: analytical, operational, and political. The regression of the panel data model, estimated with the Hausman–Taylor method, reveals that government capacity in terms of interactions of three types of capacities has a positive impact on public service delivery. This finding indicates the three types of capacities are complementary and effectively improve local government’s achievement in delivering public services. While operational capacity (including fiscal capacity) has long been reckoned in designing decentralization, this result gives empirical evidence that other critical capacities should be well considered, political and analytical capacities. It underpins the efforts to internalize local government capacity in designing and implementing decentralization programs. |
| first_indexed | 2024-03-09T17:03:32Z |
| format | Article |
| id | doaj.art-69b0309af4cf4741b25edc4c54063747 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T17:03:32Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-69b0309af4cf4741b25edc4c540637472023-11-24T14:26:52ZengMDPI AGEconomies2227-70992022-12-01101232310.3390/economies10120323The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized IndonesiaArif Setiawan0Prijono Tjiptoherijanto1Benedictus Raksaka Mahi2Khoirunurrofik Khoirunurrofik3Faculty of Economics and Business, Universitas Indonesia, Depok 16424, IndonesiaFaculty of Economics and Business, Universitas Indonesia, Depok 16424, IndonesiaFaculty of Economics and Business, Universitas Indonesia, Depok 16424, IndonesiaFaculty of Economics and Business, Universitas Indonesia, Depok 16424, IndonesiaThe issue of poor local government capacity has been considered one of the problems impeding the implementation of decentralization, especially in developing countries. This study addresses this issue in the case of Indonesia, a country that has implemented massive decentralization (administrative, fiscal, and political) over the last two decades. The study aims to provide empirical evidence for the impact of local government capacity on public service delivery in the decentralization regime. Local government capacity is measured based on a policy capacity framework at the organizational level that includes three types of capacities: analytical, operational, and political. The regression of the panel data model, estimated with the Hausman–Taylor method, reveals that government capacity in terms of interactions of three types of capacities has a positive impact on public service delivery. This finding indicates the three types of capacities are complementary and effectively improve local government’s achievement in delivering public services. While operational capacity (including fiscal capacity) has long been reckoned in designing decentralization, this result gives empirical evidence that other critical capacities should be well considered, political and analytical capacities. It underpins the efforts to internalize local government capacity in designing and implementing decentralization programs.https://www.mdpi.com/2227-7099/10/12/323decentralizationgovernment capacitypolicy capacitypublic service delivery |
| spellingShingle | Arif Setiawan Prijono Tjiptoherijanto Benedictus Raksaka Mahi Khoirunurrofik Khoirunurrofik The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia Economies decentralization government capacity policy capacity public service delivery |
| title | The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia |
| title_full | The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia |
| title_fullStr | The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia |
| title_full_unstemmed | The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia |
| title_short | The Impact of Local Government Capacity on Public Service Delivery: Lessons Learned from Decentralized Indonesia |
| title_sort | impact of local government capacity on public service delivery lessons learned from decentralized indonesia |
| topic | decentralization government capacity policy capacity public service delivery |
| url | https://www.mdpi.com/2227-7099/10/12/323 |
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