The Evaluation of Fiscal Decentralization Implementation

Rudy Badrudin, Claudia Astika Putri Mayangsari

Abstract


The objective of study is conducted  in order to evaluate the fiscal decentralization in Central Java Province by analyzing the effect of fiscal decentralization on capital expenditure, economic growth, and social welfare in 35 districts in Central Java Province based on data from 2015 to 2019 with capital expenditure and economic growth as intervening variable. The Central Java Province is a province who does not have regional divisions so its originality or authenticity of the territorial integrity of the regional autonomy will be seen into force since 2001. The year of 2015 to 2019 is  a 15-years period of fiscal decentralization implementation in Indonesia after 2001. The analytical method used is based on the Partial Least Square (PLS) which follows the structural equation  model (SEM) model for testing hypothesis (α = 5%). The findings of study are fiscal decentralization has a positive significant effect on capital expenditure, economic growth, and social welfare; capital expenditure has a negative significant effect on economic growth but has a positive significant effect on social welfare; and economic growth has a positive significant effect on social welfare in regency and city in Central Java Province.

Keywords


fiscal decentralization; capital expenditure; growth; welfare

Full Text:

PDF

References


Arham, M. A., & Naue, T. F. 2015. Public Expenditures and Poverty: Evaluation of The Government’s Priority Programs in Gorontalo Province. Economic Journal of Emerging Markets, 7(2), 107-119.

Badrudin, R. 2013. Effect of Fiscal Decentralization on Capital Expenditure, Growth, and Welfare. Economic Journal of Emerging Markets, 3(3), 211-223.

Badrudin, R. 2015. Evaluation of The Specific Allocation Fund for Indonesian Social Welfare. International Journal of Applied Business and Economic Research, 13(7), 5607-5624.

Badrudin, R., & Baldric, S. 2015. The Evaluation of The Implementation of Regional Autonomy in Indonesia. Economic Journal of Emerging Markets, 7(1), 1-11.

Badrudin, R., & Kuncorojati, I. 2017. The Effect of District Own-Source Revenue and Balance Funds on Public Welfare by Capital Expenditure and Economic Growth as an Intervening Variable in Special District of Yogyakarta. Jurnal Manajemen dan Kewirausahaan, 19(1), 54-59.

Hiktaop K., A. S. Ulita, W. Meilvidiri, M. V. I. Herdjiono, and P. P. Hayon. 2020. Influence of fiscal decentralization on the economic growth of public welfare and poverty between regions of Province of Papua, IOP Conf. Series: Earth and Environmental Science 473 (2020) 012030 IOP Publishing, doi:10.1088/1755-1315/473/1/012030.

Mirza, D. 2012. Pengaruh Kemiskinan, Pertumbuhan Ekonomi, dan Belanja Modal terhadap Indeks Pembangunan Manusia di Jawa Tengah Tahun 2006-2009. Economics Development Analysis Journal, 1(2), 18-29.

Nasution, M. E., & Wahyudi, I. 2017. Government Fiscal Policy Impact Analysis in Infrastructure Sector and Education Sector to Improve Public Welfare. Economic Journal of Emerging Markets, 9(1), 51-65.

Popa, A. M. 2012. The Impact of Social Factors on Economic Growth: Empirical Evidence for Romania and European Union Countries. Romanian Journal of Fiscal Policy, 3(2), 1-16.

Setyowati, L., & Suparwati, Y. K. 2012. Pengaruh Pertumbuhan Ekonomi, DAU, DAK, dan PAD terhadap Indeks Pembangunan Manusia dengan Pengalokasian Anggaran Belanja Modal sebagai Variabel Intervening: Studi Empiris pada Pemerintah Kabupaten dan Kota se Jawa. Prestasi, 9(1), 24-46.

Simanjuntak, J., Tri, R., & Nekky, R. 2017. Economic Growth as Mediation of Regional Own Source Revenue, Investment and Asset Management on Labor Absorption and Social Welfare in Regencies/Cities in Riau Islands Province. International Journal of Economics and Finance, 9(8), 127-137.

Simanjuntak, L. L., Subeki, A., Ferina, I. S., & Hasni, Y. 2013. Analysis of Flypaper Effect in General Allocation Fund and Regional Original Income to Regional Expenditure of Districts and Cities in South Sumatera. Ecomomic Journal of Emerging Market, 5(1), 24-32.

Yandri, P. 2012. Autonomy Policy and Social Welfare in Tangerang City. Economic Journal of Emerging Markets, 4(1), 52-62.

Zemguilene, J. 2012. Public Expenditure on Capital Formation and Private Sector Productivity Growth: Evidence From Lithuania and The Euro Area. Organizatons and Markets In Emerging Economies, 18(3), 61-74.

Zulyanto, A. 2010. Pengaruh Desentralisasi Fiskal terhadap Pertumbuhan Ekonomi di Provinsi Bengkulu. Semarang: Universitas Diponegoro.




DOI: https://doi.org/10.35591/wahana.v26i1.336

Wahana: Jurnal Ekonomi, Manajemen dan Akuntansi
ISSN : 2685-1415 (Online) | 1410-8224 (Print)
Published by Pusat Penelitian dan Pengabdian Masyarakat Politeknik YKPN Yogyakarta.
Jl. Gagak Rimang No. 2-4 Balapan, Yogyakarta 55222
Phone (0274) 560159, 562317, 513413, 563516 Fax. (0274) 561591 

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.