Fiscal Decentralisation and Economic Growth in Indonesia

Erdhany Dwi Cahyadi
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Abstract

Fiscal decentralisation is deemed as an effective policy to increase efficiency in providing public goods and appears as a way to foster economic growth. This paper addresses the theoretical and empirical linkage between fiscal decentralisation on economic growth. Here, we use five decentralisation measures to capture the multidimensional aspect of fiscal decentralisation. Using data from the lowest level of government and the latest data in Indonesia from 2010 to 2017, the results showed that fiscal decentralisation is significantly and negatively related to economic growth.
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印尼财政分权与经济增长
财政分权被认为是提高公共产品提供效率的有效政策,也是促进经济增长的一种方式。本文论述了财政分权与经济增长之间的理论和实证联系。在这里,我们使用五项权力下放措施来捕捉财政权力下放的多层面。使用印尼政府最低级别的数据和2010年至2017年的最新数据,结果表明,财政分权与经济增长显著负相关。
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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