The Effect of Fiscal Decentralization on Economic Development Performance in Indonesia

Jurnal Ekonomi dan Studi Pembangunan Pub Date : 2022-10-26 DOI:10.17977/um002v14i22022p171

Muhamad Armawaddin, W. Rumbia, Ahmad Ahmad

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Abstract

The purpose of this study is to test and analyze the influence of fiscal decentralization on development performance in Indonesia using the structural equation model approach. The data uses panel data, from 34 provinces and in 2015-2019 sourced from the Ministry of Finance of the Republic of Indonesia and the Central Bureau of Statistics (BPS). Data analysis using structural equation model approach with the help of Smart-PLS 3.3.3 software. The outer model evaluation results concluded that all indicators of fiscal decentralization variables and economic development performance variables are valid. The most powerful indicator reflecting the latent variable of fiscal decentralization is the ratio of regional income and economic development performance is an indicator of economic growth. The results of the evaluation of the inner model found that fiscal decentralization performance has a positive and significant influence on development performance. The existence of fiscal inequality among provinces in Indonesia causes uneven ratios of capital expenditures and public incomes as seen from the low indicator in reflecting decentralization of fiscal and economic performance

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财政分权对印尼经济发展绩效的影响

本研究的目的是使用结构方程模型方法检验和分析财政分权对印度尼西亚发展绩效的影响。该数据使用了2015-2019年来自34个省的面板数据，这些数据来自印度尼西亚共和国财政部和中央统计局。借助Smart PLS 3.3.3软件，采用结构方程模型方法进行数据分析。外部模型评估结果表明，财政分权变量和经济发展绩效变量的所有指标都是有效的。反映财政分权潜变量的最有力指标是地区收入比率，经济发展绩效是经济增长的指标。内部模型的评价结果发现，财政分权绩效对发展绩效有积极而显著的影响。印度尼西亚各省之间的财政不平等导致资本支出和公共收入比率不均衡，从反映财政和经济业绩权力下放的低指标可以看出

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来源期刊

Jurnal Ekonomi dan Studi Pembangunan

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审稿时长

25 weeks