Fiscal decentralization which has been doing since 2001 brought massive transformation for the go... more Fiscal decentralization which has been doing since 2001 brought massive transformation for the governance of the public finance in Indonesia. This research aimed to observe the effect of fiscal decentralization in Indonesia on provincial government size [ratio between provincial government expenditure (consolidation between province and district, city) on GDRP of province] and the effect of provincial government size on the regional economic growth. The method of the research was econometric panel data modelling for data of 26 provinces in Indonesia from 1995 to 2013. Result showed that fiscal decentralization in Indonesia had positive effect on provincial government size. Provincial government size also positively affected regional economic growth. However, this study showed that optimal size of provincial government in order to maximize regional economic growth had not or did not occur in Indonesia based on data used.
Keywords: Fiscal decentralization, provincial government size, regional economic growth
Fiscal decentralization which has been doing since 2001 brought massive transformation for the go... more Fiscal decentralization which has been doing since 2001 brought massive transformation for the governance of the public finance in Indonesia. This research aimed to observe the effect of fiscal decentralization in Indonesia on provincial government size [ratio between provincial government expenditure (consolidation between province and district, city) on GDRP of province] and the effect of provincial government size on the regional economic growth. The method of the research was econometric panel data modelling for data of 26 provinces in Indonesia from 1995 to 2013. Result showed that fiscal decentralization in Indonesia had positive effect on provincial government size. Provincial government size also positively affected regional economic growth. However, this study showed that optimal size of provincial government in order to maximize regional economic growth had not or did not occur in Indonesia based on data used.
Keywords: Fiscal decentralization, provincial government size, regional economic growth
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Keywords: Fiscal decentralization, provincial government size, regional economic growth
Keywords: Fiscal decentralization, provincial government size, regional economic growth