Fiscal Decentralization, Economic Growth and Regional Development Inequality in Eastern Indonesia

Nurul Farida, A. Suman, R. K. Sakti
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引用次数: 5

Abstract

This study analyzes the relations between fiscal decentralization, economic growth, and regional development inequality in Eastern Indonesia using 2016-2019 panel data of thirteen Eastern Indonesia provinces obtained from Statistics Indonesia and the Directorate General for Fiscal Balance. Using simultaneous equations estimated through the Three-Stage Least Squares, this study finds that fiscal decentralization has not fully supported economic growth and correct the inequality in eastern Indonesia’s regional development. The mandate for managing the budget has not been optimally used by the local governments, indicated by poor allocation for productive expenditures and its decreasing proportion during the research period. It is caused by poor human resource quality in budget planning and management, which finally hinders the quality of public service and economic growth. Supports from physical and human capital are required to keep up with the occurring economic activities so that inequality in regional development in the area can be reduced.
财政分权、经济增长与印尼东部地区发展不平等
本研究使用来自印度尼西亚统计局和财政平衡总局的2016-2019年印尼东部13个省的面板数据,分析了印尼东部财政分权、经济增长和区域发展不平等之间的关系。通过三阶段最小二乘法估计的联立方程,本研究发现财政分权并没有完全支持经济增长和纠正印尼东部区域发展中的不平等。地方政府没有最好地利用管理预算的任务,这表现在对生产性支出的分配不足以及在研究期间生产性支出所占比例不断下降。这是由于预算规划和管理中人力资源素质差造成的,最终阻碍了公共服务质量和经济增长。需要物质和人力资本的支持,以跟上正在发生的经济活动,从而减少该地区区域发展中的不平等。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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