scholarly journals Fiscal Decentralization and Regional Economic Growth

2019 ◽  
Vol 8 (1) ◽  
pp. 108-119
Author(s):  
Hadi Sasana
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Private Investment ◽  
Fixed Effect Model ◽  
Central Java ◽  
Effect Model ◽  
Independent Variable ◽  
The Subject ◽  
Positive Effect

Fiscal decentralization in Indonesia initiated in 2001 has proven to be effective and efficient; although, its implementation still need to be evaluated. The aim of the study was to analyze the implementation of fiscal decentralization on economic growth in Central Java. Tools multiple regression analysis using the method Fixed Effect Model (FEM).The period of the research was 9 years (2009-2017), and the subject of the was 35 districts/cities in Central Java Province. The dependent variable was economic growth, the independent variable was fiscal decentralization, and the control variables were investment and labor. The results showed that fiscal decentralization has a positive effect on economic growth in the district/city in Central Java. Other findings, private investment and the amount of labor encourage economic growth in Central Java. Based on findings, to reduce the fiscal gap, local governments should be able to increase their fiscal capacity through the development of commodity-based economic activity in their regions Keywords: Fiscal decentralization, Economic growth,  Investment, Labor

scholarly journals HUMP-SHAPED RELATION IMPLEMENTATION IN EAST JAVA

2020 ◽  
Vol 18 (1) ◽  
pp. 186-198
Author(s):  
Priyo Utomo ◽  
Anton Budi Satria ◽  
Novi Sri Sandyawati ◽  
Noor Farid ◽  
Farasandya Amalia Hapsari
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Least Square Method ◽  
Fixed Effect Model ◽  
Least Square ◽  
Government Investment ◽  
Writing Ability ◽  
Effect Model ◽  
Hump Shape ◽  
Positive Effect

This study aims to analyze the hump-shaped relation of regions in East Java Province. The proof of hump-shaped relation is seen from the influence of the degree of fiscal decentralization on economic growth. Fiscal decentralization analysis which is the ratio of regional original income and total regional expenditure, as well as using control variables consisting of government investment, and education which is implemented with reading and writing ability figures. The method used in this research is the econometrics approach. The model used in this study is the Fixed Effect Model with the Generalized Least Square method. The results of this study indicate that together the degree of decentralization, the degree of quadratic fiscal decentralization, government investment, the Gini ratio, the Gini squared ratio, and education significantly influence the regional economic growth in East Java Province. Partially the degree of decentralization, the degree of decentralized fiscal squared, government investment, the Gini ratio, the quadratic Gini ratio, and education also significantly affect economic growth, and show a hump-shape relationship, namely the degree of fiscal decentralization has a positive effect and quadratic fiscal decentralization hurts economic growth.

scholarly journals IMPACT OF INVESTMENT, LABOR, AND INFRASTRUCTURE ON JAVA ISLAND ECONOMIC GROWTH 2011-2017

2018 ◽  
Vol 1 (3) ◽  
pp. 230-241
Author(s):  
Maya Aprilia Sari
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Least Square ◽  
Clean Water ◽  
Domestic Investment ◽  
Central Java ◽  
Effect Model

The study aims to determine and analyze the effect of investment, labor, and infrastructure on economic growth in Java in 2011-2017. This research is a quantitative study using secondary data from six provinces in Java (DKI Jakarta, West Java, Central Java, Special Region of Yogyakarta, East Java and Banten) obtained from the Central Statistics Agency. Analysis of the data used in this study is panel regression of fixed effect model data using the General Least Square (GLS) method. The results showed that individually the domestic investment variable, labor, clean water infrastructure had a significant influence on economic growth while foreign investment had no significant effect on economic growth. Suggestions: 1) local governments are expected to increase the potential of each region to attract investors; 2) local governments are expected to create a conducive investment climate and facilitate investment licensing; 3) local governments are expected to increase the allocation of education funds and provide training in foreign languages ​​and skills to the workforce; 4) local governments should make better plans for the distribution of clean water and improve the efficiency of the use of clean water.© 2019, Universitas Negeri Semarang Penelitian bertujuan untuk mengetahui dan menganalisis pengaruh investasi,tenaga kerja, dan infrastruktur terhadap pertumbuhan ekonomi di Pulau Jawa tahun 2011-2017. Penelitian ini merupakan penelitian kuantitatif menggunakan data sekunder enam provinsi di Pulau Jawa (DKI Jakarta, Jawa Barat, Jawa Tengah, Daerah Istimewa Yogyakarta, Jawa Timur, dan Banten) yang diperoleh dari Badan Pusat Statistik.Analisis data yang digunakan pada penelitian ini adalah regresi data panel model fixed effect menggunakan metode General Least Square (GLS). Hasil penelitian menunjukkan bahwa secara individu variabel penanaman modal dalam negeri, tenaga kerja, infrastruktur air bersih memiliki pengaruh signifikanterhadap pertumbuhan ekonomi sedangkanpenanaman modal luar negeri tidak berpengaruh signifikan terhadap pertumbuhan ekonomi. Saran: 1) pemerintah daerah diharapkan meningkatkan potensi setiap daerah agar menarik para investor; 2) pemerintah daerah diharapkan menciptakan iklim investasi yang kondusif dan mempermudah perizinan investasi; 3) pemerintah daerah diharapkan meningkatkan alokasi dana pendidikan dan memberikan pelatihan bahasa asing dan ketrampilan kepada tenaga kerja; 4) pemerintah daerah hendaknya membuat perencanaan distribusi air bersih yang lebih baik lagi dan meningkatkan efisiensi penggunaan air bersih.

scholarly journals The Influence of Fiscal Decentralization on Economic Growth

2019 ◽  
Vol 2 (2) ◽  
pp. 146-151
Author(s):  
Hendri Hendri ◽  
Efrizal Syofyan ◽  
Idris Idris
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Capital Expenditure ◽  
Descriptive Analysis ◽  
Private Investment ◽  
City Government ◽  
Significant Positive Effect ◽  
Local Revenue ◽  
Positive Effect

The purpose of this study is to know and analyze the influence of the local revenue, the balance fund, the capital expenditure and the private investment on economic growth. This research is an exploratory study conducted on 19 regency/city government in West Sumatera Province. Data analysis techniques are descriptive analysis, classical assumption test, and panel data regression analysis. The results of this study found that: 1) The local revenue of the region has no significant effect on economic growth, 2) the Balance fund has a significant positive impact on economic growth, 3) the Capital expenditure has a significant positive effect on economic growth, 4) the Private investment has a significant positive effect on economic growth.

scholarly journals The Effect Of Fiscal Decentralization And Economic Growth On Poverty In Gorontalo Province

2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Dahlia Destari Inayah Ali ◽  
Sri Endang Saleh
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Quantitative Methods ◽  
Time Series Data ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Series Data ◽  
Section Data ◽  
Negative Effect

The implementation of fiscal decentralization policy has a good impact on the development of the potential and creativity of local governments. Effectiveness in managing the results of regional wealth will affect the original income of the region which can then be utilized for the welfare of the community. This study aims to determine the effect of fiscal decentralization and economic growth on poverty in Gorontalo Province. This research uses quantitative methods. The data used in this study were sourced from the Central Statistics Agency and the Directorate General of Fiscal Balance so that the data in this study were secondary data using the econometrics method through a panel data regression equation in the form of a combination of 10-year time series data (2008-2017) and cross section data 6 Regency / City areas in Gorontalo Province. Estimation is done using the Fixed Effect Model (FEM). The results of this study indicate that (1) Partially the degree of fiscal decentralization has a negative effect (unidirectional relationship) and significant on poverty means that the greater the fiscal decentralization variable will have an impact on reducing the level of poverty (2) Partially economic growth has a negative effect (unidirectional relationship) and significant to poverty means increasing economic growth can reduce poverty levels (3) Simultaneously the degree of fiscal decentralization and economic growth have a significant effect on poverty in Gorontalo Province. Keywords: fiscal decentralization, economic growth, poverty

scholarly journals Analysis of the Influence of Infrastructure on Economic Growth in North Sumatra Province

2021 ◽  
Vol 8 (4) ◽  
pp. 196-210
Author(s):  
Syamsidar Sinaga ◽  
Irsad . ◽  
Rahmanta .
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Government Spending ◽  
Fixed Effect Model ◽  
Road Infrastructure ◽  
Health Infrastructure ◽  
Effect Model ◽  
Independent Variable ◽  
Infrastructure Health ◽  
North Sumatra

The objective of the research was to analyze the influence of road infrastructure, health infrastructure, and government spending in infrastructure on economic growth in North Sumatra Province. In the model equation, economic growth is dependent variable while road infrastructure, health infrastructure and government spending in infrastructure are independent variable. The scope of this research is the district and city in North Sumatra Province, exactly 32 districts/cities from 2015-2019. The analyzing model is the Fixed Effect Model, by using E-views 10 software. The result of the research showed that road infrastructure, health infrastructure, and government spending in infrastructure simultaneously had significant influence on economic growth. Partially road infrastructure had negative and not significant influence on economic growth, health infrastructure had positive and significant influence on economic growth and government spending in infrastructure had positive and not significant influence on economic growth in North Sumatra Province. Keywords: Road Infrastructure, Health Infrastructure, Government Spending in Infrastructure, Economic Growth.

THE IMPACT OF FISCAL DECENTRALIZATION ON TAX EFFORT OF CHINA'S LOCAL GOVERNMENTS AFTER THE TAX SHARING SYSTEM

2012 ◽  
Vol 57 (01) ◽  
pp. 1250005 ◽  
Author(s):  
JR-TSUNG HUANG ◽  
KUANG-TA LO ◽  
PO-WEN SHE
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Trade Openness ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Tax Effort ◽  
Effect Model ◽  
Tax Sharing ◽  
The Impact

The purpose of this study is to investigate whether and to what extent fiscal decentralization affects tax effort of local governments in China after the Tax Sharing System (TSS). This research provides different indexes of tax effort and fiscal decentralization in analysis. By using the panel data of 31 regions in China during the period of 1996–2006 and the two-way fixed-effect model, the empirical results show that fiscal decentralization has a significantly positive impact on tax effort of local governments. In addition, this positive influence of fiscal decentralization on tax effort increases over time. Finally, trade openness and industrialization level also will enhance the local government's tax effort.

scholarly journals The Effect Of Fiscal Decentralization To Gross Domestic Regional Product Of District / City In South Sumatra Province

2017 ◽  
Vol 1 (2) ◽  
pp. 181
Author(s):  
Dessy Dian Syari ◽  
Syamsurijal Syamsurijal ◽  
Bernadette Robiani
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Direct Impact ◽  
Effect Model ◽  
District Economy ◽  
Fiscal Decentralisation ◽  
Regional Product

This study aims to examine the effect of fiscal decentralization on gross regional domestic product (GRDP) of districts in South Sumatera. The data used in this study are secondary data in the form of GRDP, district expenditure to provincial expenditure ratio, district revenue to district expenditure ratio and balancing fund to district revenue ratio in 15 districts/cities in South Sumatera for 11 years during the period of 2005-2015. Multiple regression analysis on fixed effect model is used in analyzing the data. The result shows that simultaneosly, fiscal decentralisation has significant effect on GRDP of districits/cities in South Sumatera. However, in partial test, the district expenditure to provincial expenditure ratio is positive and insignificant. This is related to the district expenditure allocation that has not any direct impact on the district economy thus, it has yet to give results that can support the economic growth.

scholarly journals ANALISIS PERKEMBANGAN SEKTOR KEUANGAN TERHADAP PERTUMBUHAN EKONOMI DI NEGARA ISLAM

2021 ◽  
Vol 17 (2) ◽  
pp. 27-37
Author(s):  
Izzun Khoirun Nissa
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Fixed Effect Model ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Effect Model ◽  
Islamic Countries ◽  
Negative Effect ◽  
Conventional Banks ◽  
Positive Effect

This study analyzes the development of the financial sector on economic growth in Islamic countries in twelve Islamic countries for the period of 2011-2018. This study aims to determine the effect of the sector from conventional and sharia banking or the whole on economic growth in Islamic countries and from the Islamic finance sector to economic growth in Islamic countries. This study applied panel data to estimate empirically involving 12 Islamic countries during the 2011-2018 period. This study reveals that the fixed Effect model is the best model to explain the effect of the independent variables as a whole and specifically the Islamic finance sector on the dependent variable. Overall, the results of this study indicate that the variables of interest rates, total assets of conventional banks, financing and total assets of Islamic banks have no effect on economic growth. Meanwhile, the deposit variable has a negative effect and the number of Islamic banks has a positive effect on economic growth. Furthermore, the test for the Islamic finance sector on economic growth, the financing variable and the number of sharia offices have a significant positive effect on economic growth. For the variable total assets of Islamic banks has no effect on economic growth.

scholarly journals Pengaruh Pertumbuhan Ekonomi dan Investasi Terhadap Ketimpangan Pendapatan di Kabupeten/Kota Provinsi Nusa Tenggara Barat

2019 ◽  
Vol 3 (3) ◽  
pp. 365-375
Author(s):  
Mohammad Royan ◽  
Wahyu Hidayat Riyanto ◽  
Ida Nuraini
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Significant Influence ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Regional Income Inequality ◽  
Independent Variable ◽  
Method Analysis

The distinction of interzonal potential will cause several problems such as uneven economic growth, the area-centered spreading investment, and income inequality. This research aims to analyze the effect of economic growth and investment on the inter-regional income inequality in West Nusa Tenggara from 2012 to 2017. This research uses secondary data obtained from BPS-Statistics Indonesia (Badan Pusat Statistik), and the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BPKM). Williamson Index is used to representing income inequality, and the method analysis is the panel data analyzing with a Fixed Effect Model (FEM). The effect between a dependent variable and independent variable will be shown that economic growth has a positive and significant influence towards the income inequality, and investment has a positive and not significant influence towards the income inequality.

scholarly journals The Influence of Human Capital on Economic Growth

2021 ◽  
Vol 3 (2) ◽  
pp. 24-30
Author(s):  
Riyanto Wujarso
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Local Governments ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
High Productivity ◽  
Education And Health ◽  
Effect Model ◽  
Financial Growth ◽  
Dominant Influence

This research examines the effect of human capital on regional financial development in West Java Province from 2017 to 2019. This study's procedure employs a quantitative approach, and the data used is secondary data. Secondary evidence in this analysis comes from BPS data reporting. Panel regression with the GLS fixed-effect model approach was used as the research technique. The results of this study are the human capital variable, namely the level of education level. Based on the estimation results in this study, the education variable is considered the variable with the most dominant influence on economic growth. This research also provides suggestions to local governments so that there is a need for an increase in regional expenditure allocations for the education and health sectors to improve the workforce's quality so that they can have high productivity that can encourage financial growth.

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