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Effect of fiscal decentralization on capital expenditure, growth, and welfare

Author

Listed:
  • Rudy Badrudin

    (Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)

Abstract

This research analyzes the influence of fiscal decentralization on capital expenditure, economic growth, and social welfare of 29 regencies and 6 cities in Central Java Province based on the data of year 2004 to 2008. The method used to analyze the hypotheses is the Partial Least Square. The results showes that fiscal decentralization has no significant effect on capital expenditure; fiscal decentralization has significant effect on economic growth and social welfare; capital expenditure has no significant effect on economic growth and social welfare; and economic growth has significant effect on social welfare.

Suggested Citation

  • Rudy Badrudin, 2011. "Effect of fiscal decentralization on capital expenditure, growth, and welfare," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(3), pages 211-223, April.
    • Handle: RePEc:uii:journl:v:3:y:2011:i:3:p:211-223
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    File URL: https://journal.uii.ac.id/JEP/article/download/2974/2749
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    References listed on IDEAS

    as
    1. Diah Ayu Kusumadewi & Arif Rahman, 2007. "Flypaper Effect pada Dana Alokasi Umum (Dau) dan Pendapatan Asli Daerah (PAD) terhadap Belanja Daerah pada Kabupaten/Kota di Indonesia," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 11(1).
    2. Diah Ayu Kusumadewi & Arif Rahman, 2007. "Flypaper Effect Pada Dana Alokasi Umum (Dau) Dan Pendapatan Asli Daerah (Pad) Terhadap Belanja Daerah Pada Kabupaten/Kota Di Indonesia," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 11(1), pages 67-80, Juni.
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    Citations

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    Cited by:

    1. Sarastri Mumpuni Ruchba & Ferdy Suhada, 2015. "The impact of regional autonomy and monetary crisis on economic growth in Yogyakarta," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 60-68, April.
    2. Rudy Badrudin & Baldric Siregar, 2015. "The evaluation of the implementation of regional autonomy in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 1-11, April.
    3. Manggar Wulan Kusuma & Rudy Badrudin, 2016. "Fiscal decentralization effect on economic growth in Bali," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 136-147, April.

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    More about this item

    Keywords

    Fiscal decentralization; capital expenditure; economic growth; social welfare;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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