Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia
AbstractIn Indonesia, fiscal decentralisation has been implemented for two decades, and it is expected that the regions will have a sufficient level of independence to increase economic growth and welfare. This study investigates the influence of fiscal decentralisation and human development on regi...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-12-01
|
| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2220520 |
| _version_ | 1797658391596761088 |
|---|---|
| author | Eleonora Sofilda Muhammad Zilal Hamzah Suhal Kusairi |
| author_facet | Eleonora Sofilda Muhammad Zilal Hamzah Suhal Kusairi |
| author_sort | Eleonora Sofilda |
| collection | DOAJ |
| description | AbstractIn Indonesia, fiscal decentralisation has been implemented for two decades, and it is expected that the regions will have a sufficient level of independence to increase economic growth and welfare. This study investigates the influence of fiscal decentralisation and human development on regional economic growth. The sample data comprised 484 county-level in Indonesia and utilised the panel data method. The findings showed that the central government grant, locally generated revenue, and human capital development positively influenced regional economic growth, although the degree of decentralisation negatively affected regional growth. Meanwhile, for regions with independence above 50 per cent, decentralisation, locally generated revenue, central government transfer and provincial loans and human capital development positively influenced regional economic growth. In addition, findings also indicated that a dynamic effect exists, implying that the performance of previous regional economic growth influenced current economic achievements. The policy implication of the study is that policymakers cannot equalise policy to boost regional economic growth because every county has its specific characteristics. |
| first_indexed | 2024-03-11T17:59:21Z |
| format | Article |
| id | doaj.art-cce22f13b84c433fb6695559348ce248 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:59:21Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-cce22f13b84c433fb6695559348ce2482023-10-17T10:51:05ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2220520Analysis of fiscal decentralisation, human development, and regional economic growth in indonesiaEleonora Sofilda0Muhammad Zilal Hamzah1Suhal Kusairi2Doctoral Program in Economics, Public Policy Concentration, Universitas Trisakti, Jakarta, IndonesiaMaster of Economics Program, Universitas Trisakti, Jakarta, IndonesiaSchool of Economics and Business, Telkom University, Bandung, IndonesiaAbstractIn Indonesia, fiscal decentralisation has been implemented for two decades, and it is expected that the regions will have a sufficient level of independence to increase economic growth and welfare. This study investigates the influence of fiscal decentralisation and human development on regional economic growth. The sample data comprised 484 county-level in Indonesia and utilised the panel data method. The findings showed that the central government grant, locally generated revenue, and human capital development positively influenced regional economic growth, although the degree of decentralisation negatively affected regional growth. Meanwhile, for regions with independence above 50 per cent, decentralisation, locally generated revenue, central government transfer and provincial loans and human capital development positively influenced regional economic growth. In addition, findings also indicated that a dynamic effect exists, implying that the performance of previous regional economic growth influenced current economic achievements. The policy implication of the study is that policymakers cannot equalise policy to boost regional economic growth because every county has its specific characteristics.https://www.tandfonline.com/doi/10.1080/23322039.2023.2220520Fiscal DecentralisationFinancial IndependenceHuman Capital DevelopmentEconomic GrowthH4H7 |
| spellingShingle | Eleonora Sofilda Muhammad Zilal Hamzah Suhal Kusairi Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia Cogent Economics & Finance Fiscal Decentralisation Financial Independence Human Capital Development Economic Growth H4 H7 |
| title | Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia |
| title_full | Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia |
| title_fullStr | Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia |
| title_full_unstemmed | Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia |
| title_short | Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia |
| title_sort | analysis of fiscal decentralisation human development and regional economic growth in indonesia |
| topic | Fiscal Decentralisation Financial Independence Human Capital Development Economic Growth H4 H7 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2220520 |
| work_keys_str_mv | AT eleonorasofilda analysisoffiscaldecentralisationhumandevelopmentandregionaleconomicgrowthinindonesia AT muhammadzilalhamzah analysisoffiscaldecentralisationhumandevelopmentandregionaleconomicgrowthinindonesia AT suhalkusairi analysisoffiscaldecentralisationhumandevelopmentandregionaleconomicgrowthinindonesia |