DESENTRALISASI FISKAL DAN PERTUMBUHAN EKONOMI REGIONAL DI INDONESIA (Studi Kasus Pada 26 Propinsi)

Abstract

The aim of this study is to examine the effect of fiscal decentralization on economic growth. By using the data of 26 province pre and pasca decentralization for periods of 1998-2003, using GLS method (General Least Square) for process polling data. Factor that affect the regional economic growth are fiscal decentralization revenue indicators (Xl), and fiscal decentralization expenditures indicators (X2), we also identify other factors (as controlled variables) that can influence the economic growth. These variables are investment ate (X3), labor force (X4), rate openness economic province(X5), and inflation rate (X6).The results found regional economic growth for periods 1998-2003 are influenced by fiscal decentralization revenue indicators (Xl), fiscal decentralization expenditures indicators (X2), and rate openness economic province(X5). However investment rate (X3), labor force (X4), and inflation rate (X6) doesn‘t influence regional economic growth.

Keywords

• fiscal decentralization revenue indicators, fiscal decentralization expenditures indicators, regional economic growth, and panel data