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Local government spending and service delivery in Indonesia: the perverse effects of substantial fiscal resources

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  • Blane D. Lewis

Abstract

Local government spending and service delivery in Indonesia: the perverse effects of substantial fiscal resources. Regional Studies. This study examines the impact of local government expenditure on service delivery in Indonesia. District spending positively influences education, health and infrastructure service access – but only up to a point, after which the relationship becomes negative. The quadratic spending effects disappear for districts managed by directly elected executives and those that perform well on their financial audits. For these arguably less corrupt districts the impact of spending on services is positive across the entire range of expenditure. The consistently beneficial impact of less corrupt district spending on service access is mitigated, however, by rising dependence on intergovernmental transfers.

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  • Blane D. Lewis, 2017. "Local government spending and service delivery in Indonesia: the perverse effects of substantial fiscal resources," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1695-1707, November.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:11:p:1695-1707
    DOI: 10.1080/00343404.2016.1216957
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    Cited by:

    1. Blane D. Lewis & Adrianus Hendrawan, 2020. "The impact of public sector accounting reform on corruption: Causal evidence from subnational Indonesia," Public Administration & Development, Blackwell Publishing, vol. 40(5), pages 245-254, December.
    2. Morelli, Massimo & Giommoni, Tommaso & Nicolò, Antonio, 2020. "Corruption and Extremism," CEPR Discussion Papers 14634, C.E.P.R. Discussion Papers.
      • Attila Gaspar & Tommaso Giommoni & Massimo Morelli & Antonio Nicolò, 2021. "Corruption and Extremism," BAFFI CAREFIN Working Papers 21163, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    3. Blane D. Lewis & Hieu T. M. Nguyen, 2018. "Policy failure and educational attainment in Indonesia," Departmental Working Papers 2018-17, The Australian National University, Arndt-Corden Department of Economics.
    4. Giommoni, Tommaso & Morelli, Massimo & Nicolò, Antonio, 2020. "Corruption and Extremism," CEPR Discussion Papers 14634, C.E.P.R. Discussion Papers.
      • Attila Gaspar & Tommaso Giommoni & Massimo Morelli & Antonio Nicolò, 2021. "Corruption and Extremism," BAFFI CAREFIN Working Papers 21163, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    5. Sulaiman Olusegun Atiku & Collen Mulife Kurana & Idris Olayiwola Ganiyu, 2023. "Leadership and Service Delivery in Times of Change," Administrative Sciences, MDPI, vol. 13(5), pages 1-15, May.
    6. Uyar, Ali & Nimer, Khalil & Kuzey, Cemil & Shahbaz, Muhammad & Schneider, Friedrich, 2021. "Can e-government initiatives alleviate tax evasion? The moderation effect of ICT," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    7. Blane D. Lewis & Adrianus Hendrawan, 2018. "The impact of mayor-council coalitions on local government spending, service delivery, and corruption in Indonesia," Departmental Working Papers 2018-19, The Australian National University, Arndt-Corden Department of Economics.
    8. Lewis, Blane D. & Hendrawan, Adrianus, 2019. "The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia," European Journal of Political Economy, Elsevier, vol. 58(C), pages 178-191.
    9. Irem Sevindik & Mehmet Serkan Tosun & Serdar Yilmaz, 2021. "Local Response to the COVID-19 Pandemic: The Case of Indonesia," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    10. Blane Lewis, 2016. "Local political fragmentation: Fiscal and service delivery effects in Indonesia," Departmental Working Papers 2016-16, The Australian National University, Arndt-Corden Department of Economics.

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