Dampak Desentralisasi Fiskal di Indonesia terhadap Pertumbuhan Ekonomi dan Disparitas Antar Daerah: Analisa Model Makro Ekonometrik Simultan

From January 1, 2001, when new autonomy laws were implemented, lndonesia began to move toward decentralization of what had been a highly decentralized. This policy adopts two complimentary laws. Law No.22/1999, which basically the devolution policy, has been accompanied by La No.25/1999, which basically reflect that decentralization policy in Indonesia has adopted the concept of ”money follows function”. Law No.25/1999 describe the fiscal decentralization process that will create a new intergovernmental transfer scheme between the central government and local government. Some of items in the law were really new ones such as the natural resources revenue sharing, income tax sharing, general allocation fund (OAF) and specifics allocation fund (SAF). The policies oftax and natural resource revenue sharing can result in fiscal imbalance among regions. Tax and natural resources revenue sharing will benefit only to urbanized and natural resources rich regions Because of it, Central Government created General Allocation Funds. This fund has block grant characteristic and will be given to regions by fiscal gap conception. The purpose is to equalize fiscal capacity among regions that in turn also can reduce disparity among them. The Simultaneous Macro Econometric Model is made for analyzing the fiscal decentralization impact to economic growth and region disparity. The policy simulation in this model used transfer fund from central government such as Tax Revenue Sharing, Natural Resource Revenue Sharing and General Allocation Fund. The simulation is carried out to see the optimality of various possible existing policies. The optimality is measured by evaluating the high rate of economic growth and low disparity.

Download Full-text

No taxation, no representation: An investigation of the relationship between natural resources and fiscal decentralization

Environment and Planning C Politics and Space ◽

10.1177/2399654417752683 ◽

2018 ◽

Vol 36 (7) ◽

pp. 1234-1255

Author(s):

Mohammad Arzaghi ◽

Andrew Balthrop

Keyword(s):

Natural Resources ◽

Natural Resource ◽

Local Governments ◽

Central Government ◽

Fiscal Decentralization ◽

Government Expenditures ◽

Government Control ◽

Resource Rents ◽

Natural Resource Rents ◽

The Relationship

Rents from natural resources can alter the relationship between central and local governments by providing a new source of government financing. We develop a model to explore the relationship between fiscal decentralization and resource abundance. Our model indicates that natural resource rents can detach central government expenditures from the tax base so that the central government can spend more to persuade a fractious periphery to remain under central government control. Thus, other things being equal, higher natural resource rents can result in less decentralized government expenditures. We empirically explore the relationship between fiscal decentralization and natural resource rents using a panel of 60 countries over the past 40 years. Empirical results support our economic model: A 1% increase in natural resource rents as a fraction of gross domestic product results in government expenditures that are 0.53% less decentralized.

Download Full-text

Dampak Desentralisasi Fiskal terhadap Perekonomian Antar Daerah : Analisa Model IRIO

Jurnal Ekonomi dan Pembangunan Indonesia ◽

10.21002/jepi.v3i2.28 ◽

2003 ◽

Vol 3 (2) ◽

pp. 50-71

Author(s):

Nurkholis Nurkholis ◽

Bambang P.S. Brodjonegoro

Keyword(s):

Natural Resources ◽

Central Government ◽

Fiscal Decentralization ◽

Government Expenditure ◽

Regional Government ◽

Block Grants ◽

Current Formulation ◽

Decentralization Policy ◽

Tax Sharing ◽

The Impact

Regional autonomy program is the form of fiscal decentralization policy in Indonesia, legally started with the law of Regional Government No.22/1999 about de-concentration azas, which imply power or authority sharing and No.25/1999 about decentralization, which imply financial sharing between central and regional government. Financial sharing is tax and natural resources sharing revenue. This financial sharing type can widen fiscal gap between regions. As the solution, the central government gives block grants. Interregional Input-Output (IRIO) model can be used to analyze the impact of fiscal decentralization policy on sectoral and regional linkages, multipliers, growth, equalization, and efficiency of the regional economy. The analysis use shock variables of inter-governmental transfer including tax sharing revenue, natural resources revenue and block grants. They are treated as an exogenous variable package by regional government expenditure. The expenditures are in the form of investment and consumption based on IRIO model to analyze the optimality of policy variation. The analysis shows that the optimality of growth, equalization, and economic efficiency will be reached if the allocation of inter-governmental transfer is exactly the same as the potency and linkages between sectors and regions. We find the current formulation of intergovernmental transfer by central government, potent to increase regional disparity. Central government should reformulate division of inter-governmental transfer to avoid fiscal decentralization to be contra productive policy.

Download Full-text

DESENTRALISASI FISKAL DAN PENGARUHNYA TERHADAP PERTUMBUHAN EKONOMI DI PROPINSI YOGYAKARTA

Signifikan Jurnal Ilmu Ekonomi ◽

10.15408/sjie.v1i1.2593 ◽

2012 ◽

Vol 1 (1) ◽

Author(s):

Dwi Suciayu ◽

Fahmi Wibawa

Keyword(s):

Economic Growth ◽

Central Government ◽

Fiscal Decentralization ◽

Revenue Sharing ◽

Positive Influence ◽

Explanatory Variables ◽

Result Show ◽

Special Area ◽

Variable Point ◽

Special Region

Purpose of this study is to analyze the effect of fiscal decentralization to economic growth in The Special Region of Yogyakarta Province. The Explanatory variables is local district government’s budget in terms of acceptance of revenue, revenue-sharing, the general allocation fund, and special allocation funds to economic growth in the province. The result show fiscal decentralization contributes effect to economic growth. Yet, Each variable point out that foreign-source revenue significant to influence economic growth, revenue-sharing significant effect on economic growth, the general allocation fund a significant effect on economic growth, the special allocation fund doesn’t give significant effect on economic growth. This means the implementation of fiscal decentralization has positive influence on economic growth. Thus, the central government may continue in implement fiscal decentralization in a special area of Yogyakarta since the policy could promote economic growth in the region.DOI: 10.15408/sjie.v1i1.2593

Download Full-text

STRATEGI OPTIMALISASI PENGELOLAAN DANA PERIMBANGAN DI INDONESIA

Jurnal Manajemen Pembangunan Daerah ◽

10.29244/jurnal_mpd.v10i1.22705 ◽

2018 ◽

Vol 10 (1) ◽

Author(s):

Ahmad Nurkhayat ◽

Muhammad Firdaus ◽

Sri MUlatsih

Keyword(s):

Economic Growth ◽

Regression Analysis ◽

Panel Data ◽

Swot Analysis ◽

Central Government ◽

Fiscal Decentralization ◽

Descriptive Analysis ◽

Revenue Sharing ◽

Panel Data Regression ◽

Data Regression

ABSTRACTBalanced Fund is a part of the fund transfers by the central government to the regional government in implementing fiscal decentralization. The aims of this policy are to: (1) reduce the inequality of funding sources between central and regional governments (vertical imbalance), and the inter-regional imbalance (horizontal imbalance), (2) reduce public service gap among regions. The objectives of this study are to (1) describe the implementation of Balanced Fund in Indonesia, (2) analyze the effects of Balanced Fund on economic growth, (3) formulate optimization strategy of Balanced Fund management in Indonesia. This study used descriptive analysis,panel data regression analysis, and SWOT analysis. Descriptive analysis indicates that Balanced Fund has not been able to optimize equitable regional distribution of financial capability, particularly for regencies and cities. Panel data regression analysis shows that General Allocation Fund and Special Allocation Fund have positive effects on economic growth, except in Banten in which Special Allocation Fund has no effects. Meanwhile, Revenue Sharing Fund results in negative effects on economic growth, except in East Java in which it has no effects. SWOT analysis formulates eight alternative strategies which may be implemented by the Central Government in optimizing the Balanced Fund management.Keywords: General Allocation Fund, panel data, Revenue Sharing Fund, Special Allocation Fund, SWOTABSTRAKDana Perimbangan merupakan bagian dari dana transfer Pemerintah Pusat kepada PemerintahDaerah. Dana ini bertujuan:(1) mengurangi ketimpangan sumber pendanaan antara pusat dan daerah (vertical imbalance), dan ketimpangan antar daerah (horizontal imbalance), dan (2) mengurangi kesenjangan layanan publik antar daerah. Tujuan dari penelitian ini adalah (1) mendeskripsikan implementasi Dana Perimbangan di Indonesia, (2) menganalisis pengaruh Dana Perimbangan terhadap pertumbuhan ekonomi, dan (3) merumuskan strategi optimalisasi pengelolaan Dana Perimbangan di Indonesia. Penelitian ini menggunakan analisa deskriptif, analisis regresi data panel, dan analisis SWOT. Analisis deskriptif menunjukkan bahwa Dana Perimbangan belum sepenuhnya mampu menciptakan pemerataan kemampuan keuangan daerah terutama untuk wilayah kabupaten dan kota. Analisis regresi data panel digunakan untuk menganalisis pengaruh Dana Perimbangan terhadap pertumbuhan ekonomi provinsi-provinsi di Indonesia. Analisis ini menunjukkan bahwa DAU dan DAK memiliki pengaruh positif terhadap pertumbuhan ekonomi, dan DBH berpengaruh negatif. Hasil analisis SWOT merumuskan delapan alternatif strategi yang dapat dilaksanakan oleh Pemerintah Pusat dalam rangka optimalisasi pengelolaan Dana Perimbangan.Kata kunci : Dana Alokasi Umum, data panel, Dana Revenue Sharing, Dana Alokasi Khusus, SWOT

Download Full-text

Transfer-based decentralisation, economic growth and spatial inequality: Evidence from China’s 2002–2003 tax sharing reform

Urban Studies ◽

10.1177/0042098019856780 ◽

2019 ◽

Vol 57 (4) ◽

pp. 806-826

Author(s):

Fan Fan ◽

Ming Li ◽

Ran Tao ◽

Dali Yang

Keyword(s):

Economic Growth ◽

Local Governments ◽

Central Government ◽

Value Added ◽

Spatial Inequality ◽

Variable Approach ◽

Interregional Inequality ◽

Urban Rural ◽

Per Capita ◽

Tax Sharing

China has adopted a transfer-based fiscal decentralisation scheme since the mid-1990s. In the 1994 tax sharing reform, the central government significantly raised its share of government revenue vis-à-vis local governments by taking most of the newly created value-added tax on manufacturing. One aim for the adoption of the transfer-based fiscal scheme was to channel more funds to less developed regions and rural areas, and to alleviate growing interregional inequality and urban–rural income disparity. In 2002 and 2003 the Chinese central government further grabbed 50% and 60%, respectively, of the income taxes previously assigned only to local governments while providing more fiscal transfers to the country’s poor regions and the countryside. Utilising the 2002–2003 change in China’s central–local tax sharing regime as an exogenous policy shock, we employ a Simulated Instrumental Variable approach to causally evaluate the effects of the policy shock on growth, interregional inequality and urban–rural disparity. We find the lower local tax share dis-incentivised local governments and led to lower growth. Although higher central transfers helped to reduce interregional inequalities in per capita GDP and per capita income, the equalising effects were only present for urban incomes. We argue that transfer-based decentralisation without bottom-up accountability was detrimental to economic growth and had limited impact on income redistribution.

Download Full-text

McCulloch, Scrope, and Hodgskin: Nineteenth-Century Versions of Julian Simon

Journal of the History of Economic Thought ◽

10.1080/1042771032000114737 ◽

2003 ◽

Vol 25 (3) ◽

pp. 289-301 ◽

Cited By ~ 1

Author(s):

William S. Kern

Keyword(s):

Economic Growth ◽

Nineteenth Century ◽

Population Growth ◽

Natural Resources ◽

Natural Resource ◽

Resource Scarcity ◽

Limits To Growth ◽

Economic Progress ◽

Natural Resource Scarcity ◽

Growing Population

In The Ultimate Resource (1981, 1996), and in many other publications over the last several decades, Julian Simon put forth controversial views regarding the connection between natural resource scarcity, population growth, and economic progress. Simon argued, in contrast to those espousing the limits to growth, that natural resources were not getting scarcer, but more abundant, and that a large and growing population was an asset rather than a liability in the pursuit of economic growth.

Download Full-text

The Study of the Relationship between Natural Resource Abundance and Economic Growth

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.734-737.3337 ◽

2013 ◽

Vol 734-737 ◽

pp. 3337-3341 ◽

Cited By ~ 1

Author(s):

Zhin Bin Li ◽

Hong Juan Deng ◽

An Shun Cheng

Keyword(s):

Economic Growth ◽

Economic Development ◽

Natural Resources ◽

Natural Resource ◽

Policy Recommendations ◽

Resource Abundance ◽

The Relationship

The interrelationship between natural resource and economic development, hasn't reached an agreement. Some economists believe that rich natural resources promote economic growth. On the contrary, some economists think that rich natural resources hinder economic growth. Based on previous studies, this paper studies the relationship between natural resource and economic growth in our country. We try to explain the "Curse of Resources" through an example of Shanxi. Finally, we give some policy recommendations to avoid the "Curse of Resources".

Download Full-text

Peran Sumber Daya Pada Pertumbuhan Ekonomi Daerah Perbatasan Timor Leste

e-Journal Ekonomi Bisnis dan Akuntansi ◽

10.19184/ejeba.v7i2.18421 ◽

2020 ◽

Vol 7 (2) ◽

pp. 98

Author(s):

Kamilaus Konstanse Oki ◽

Margareta Diana Pangastuti

Keyword(s):

Economic Growth ◽

Human Resources ◽

Natural Resources ◽

Central Government ◽

Analysis Tool ◽

Important Indicator ◽

Timor Leste ◽

The Government ◽

Indirect Relationship ◽

Relationship Of

Economic growth is an important indicator of the success of development. The ability of resources is a determining factor driving economic growth. Belu Regency is a regency in East Nusa Tenggara Province, located on the Indonesia-Timor Leste border, has economic and political strategic value. Human resources, natural resources and the budget are the real sector of the economy in driving economic growth. The research objective was to analyze the effect of resources on the economic growth of Belu district. The study was conducted using secondary data and SmartPLS was the analysis tool. The results of the study, the relationship of natural resources directly with welfare is negative and will be positive when the indirect relationship through the budget. The direct and indirect relationship of human resources with welfare through the budget is positive, but the direct value relationship is smaller when compared to the indirect relationship. This shows that the budget that is formed from the wealth of natural resources and human resources is an important factor in creating public welfare as measured through economic growth. Budgets sourced from local and central government are increasing every year. The creation of the government and elements of society make the most of resources. The attention of the central government through balancing funds is very high. This is because Belu district located on the Indonesia-Timor Leste border is a macroeconomic picture of the border country

Download Full-text

PENGARUH KEMANDIRIAN KEUANGAN DAERAH TERHADAP PERTUMBUHAN EKONOMI KABUPATEN/KOTA PROVINSI BANTEN

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.3.1.8-22 ◽

2018 ◽

Vol 3 (1) ◽

pp. 8-22

Author(s):

Stannia Cahaya Suci ◽

Alla Asmara

Keyword(s):

Economic Growth ◽

Panel Data ◽

Key Words ◽

Central Government ◽

Fiscal Decentralization ◽

Regional Finance ◽

Local Revenue ◽

Negative Effect ◽

Positive Effect ◽

Descriptive Method

Fiscal decentralization aims to improve regional finance independency and reduce the fiscal dependency of central government. However, in practice, there are many areas that still rely on the assistance central finance for their regional development. This research aims to discuss the development of regional finance independency and analyze the influence of regional finance independency on economic growth in Banten Province. This research uses descriptive method and panel data on 6 (six) regencies and cities in Banten Province at 2001-2011. The results showed the significantly positive effect of regional finance independency on economic growth and significantly negative effect of balance fund’s ratio on economic growth. Key words: local revenue, economic growth, panel data

Download Full-text