Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index
This research examines regional government performance in Indonesia’s provinces after the implementation of fiscal decentralization in 2001 using a two-stage approach. First, extensive input and output data are utilized to measure government productivity and efficiency indices using a Malmquist prod...
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| Format: | Article |
| Language: | English |
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Sprint Investify
2019-07-01
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| Series: | Expert Journal of Economics |
| Subjects: | |
| Online Access: | http://economics.expertjournals.com/23597704-703/ |
| _version_ | 1830513471591022592 |
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| author | Anisah ALFADA |
| author_facet | Anisah ALFADA |
| author_sort | Anisah ALFADA |
| collection | DOAJ |
| description | This research examines regional government performance in Indonesia’s provinces after the implementation of fiscal decentralization in 2001 using a two-stage approach. First, extensive input and output data are utilized to measure government productivity and efficiency indices using a Malmquist productivity index (MPI) for four significant expenditures for the 2004-2015 period: infrastructure, education, health and social protection. Second, the relationship between the degree of fiscal decentralization and the first-stage productivity scores is analyzed using a Tobit model. This study provides extensive and internationally comparable data that distinguish it from existing studies in Indonesia because appropriate input and output data are the significant elements in measuring government expenditure efficiency. From the estimation results, the degree of fiscal decentralization is found to promote government expenditure efficiency. Tax revenue collected by regional governments will support government expenditure efficiency in the infrastructure, education and health sectors; however, the degree of fiscal decentralization seems to negatively affect the government expenditure efficiency in the social protection sector. Therefore, the methodology constructed in this research can be a prominent instrument for the government to upgrade regional government performance in Indonesia. |
| first_indexed | 2024-12-22T02:46:09Z |
| format | Article |
| id | doaj.art-c47229683655408288c2204a56e8edf4 |
| institution | Directory Open Access Journal |
| issn | 2359-7704 |
| language | English |
| last_indexed | 2024-12-22T02:46:09Z |
| publishDate | 2019-07-01 |
| publisher | Sprint Investify |
| record_format | Article |
| series | Expert Journal of Economics |
| spelling | doaj.art-c47229683655408288c2204a56e8edf42022-12-21T18:41:32ZengSprint InvestifyExpert Journal of Economics2359-77042019-07-01714557Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity IndexAnisah ALFADA0Waseda University, JapanThis research examines regional government performance in Indonesia’s provinces after the implementation of fiscal decentralization in 2001 using a two-stage approach. First, extensive input and output data are utilized to measure government productivity and efficiency indices using a Malmquist productivity index (MPI) for four significant expenditures for the 2004-2015 period: infrastructure, education, health and social protection. Second, the relationship between the degree of fiscal decentralization and the first-stage productivity scores is analyzed using a Tobit model. This study provides extensive and internationally comparable data that distinguish it from existing studies in Indonesia because appropriate input and output data are the significant elements in measuring government expenditure efficiency. From the estimation results, the degree of fiscal decentralization is found to promote government expenditure efficiency. Tax revenue collected by regional governments will support government expenditure efficiency in the infrastructure, education and health sectors; however, the degree of fiscal decentralization seems to negatively affect the government expenditure efficiency in the social protection sector. Therefore, the methodology constructed in this research can be a prominent instrument for the government to upgrade regional government performance in Indonesia.http://economics.expertjournals.com/23597704-703/fiscal decentralizationefficiencyIndonesiagovernment expenditureMalmquist Productivity IndexTobit model |
| spellingShingle | Anisah ALFADA Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index Expert Journal of Economics fiscal decentralization efficiency Indonesia government expenditure Malmquist Productivity Index Tobit model |
| title | Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index |
| title_full | Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index |
| title_fullStr | Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index |
| title_full_unstemmed | Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index |
| title_short | Fiscal Decentralization and Government Expenditure Efficiency in Indonesia: A Malmquist Productivity Index |
| title_sort | fiscal decentralization and government expenditure efficiency in indonesia a malmquist productivity index |
| topic | fiscal decentralization efficiency Indonesia government expenditure Malmquist Productivity Index Tobit model |
| url | http://economics.expertjournals.com/23597704-703/ |
| work_keys_str_mv | AT anisahalfada fiscaldecentralizationandgovernmentexpenditureefficiencyinindonesiaamalmquistproductivityindex |