| Summary: | ABSTRACT
Development outcomes nowadays not only measured by the successful of economic
growth but more comprehensively by the achievement of human development. Obviously
education has been place a one substantialfactor not only as a basic human right but also
in international development. Meanwhile after more than 8 years of decentralization in
Indonesia, many concerns arise regarding the decentralization impacts. One of the
considerable questions is on how far the fiscal decentralization has enhanced education
development achievement. Therefore, a set of fiscal decentralization variables used in this
paper to analyze their roles on primary education ou!comes. Enrollment Rate used as
dependent variable to represent the primary education outcomes. Regional characteristics
were also utilized to improve the robus.t,n. ess of the result.
Using panel data set of 434 sub provincial regions (districts and cities) in Indonesia,
the estimation result show that fiscal decentralization instrument played a significant role
on primary education outcomes. Furthermore, DAK seems to have a greater impact on
primary education outcomes than DAU. Additionally the estimation result also shows that
there is still a significant disparity among sub provincial region in primary education
achievement. The results suggest that fiscal decentralization instrument rearrangement
substantially needed next to the education development equalization in all sub provincial
region. This way, decentralization will foster more favorable outcomes in education
development outcomes hopefully.
Keywords: decentralization,primary education,panel data.
INTRODUCTION
Economic growth used to be the most
common measurement to portray the development
outcomes. It measured how far have
many factors in development utilized and
contributed to the aggregate of national output.
This measurement certainly has many
significant contributions to the achievement of
development. Certain level of economic
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