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Fiscal decentralization and economic growth : Evidence from Indonesia

Swasono, Fauziah - ;

As more countries embrace decentralization, economists have been debating its impact on economic growth. They use both single cross country emperical data and find mixed evidences. Indonesia is one recent example of country's migration transition from a centralized regime to a decentralized one. It is unique for its scope, scale and time of preparation. The country had only less than two years of preparation to abandon three decades of a centralized system. Decentralization meant that the central government devolved almost all public service fucntions all at once to 367 sub-provincial (district) government. This paper presents the evidence of decentralization's impact on growth in Indonesia. We use two decentralization measures : own source revenue ratio and expenditure ratio, and examine their impact on growth by using panel data covering the 1991 to 2005 period. We find that in Indonesia, hitherto, fiscal decentralization has a negative impact on growth.Baca di tempat


Ketersediaan

Call NumberLocationAvailable
EFI-55-2-2007PSB lt.dasar - Pascasarjana1
Penerbit: Lembaga Penyelidikan Ekonomi dan Masyarakat FEUI
Edisi-
SubjekGrowth
Fiscal Decentralization
ISBN/ISSN0126155x
Klasifikasi-
Deskripsi Fisik-
Info Detail Spesifik-
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

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