Main Article Content
Abstract
Fiscal decentralization was firstly implemented in 2001 and has brought a new era of local autonomy in Indonesia. The objective of fiscal decentralization to local government is to increase the economic growth and public service. This research uses a panel data regression and quadrant analysis method with the data of cluster districts and cities in Indonesia from 2013 to 2018. Findings/Originality: The panel regression estimation shows that fiscal decentralization has a positive and significant effect on economic growth in all clusters. However, the quadrant analysis results show that on average 86.7% of all clusters districts and cities were in quadrant IV which reflects low fiscal decentralization and low economic growth. The implication of the result is that the government should increases the allocation of capital expenditure in local budget to accelerate local economic growth of the districts/cities in all clusters.
Keywords
Article Details
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Economic Journal of Emerging Markets by Center for Economic Studies, Universitas Islam Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.