Analysis of Economic Growth at Regional District Sub Province Semarang in the Fiscal Decentralization Era
This research aims to analyze the fiscal decentralization impact to economic growth at regional district in sub province Semarang. The tool of analisis is regression using panel data with Generalized Least Square (GLS) method and Fixed Effect model. It uses district-level data and supplied by the Indonesian Central Bureau of Statistics during 2002 - 2006
The regression result shows that regional income, natural resources revenue sharing and tax revenue sharing, and labor forces have positive impact on economic growth at regional district in sub province Semarang. General allocation funds have negative effect towards economic growth at regional district in sub province Semarang. Fiscal decentralization brings more advantages for regions to manage their own fiscal capacities. The regions governments must be have informational advantages concerning resource allocation with optimal
Keywords: Fiscal Decentralization, economic growth, Fixed Effect Model
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