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The Impact of Fiscal Decentralization on Poverty in the Nine Provinces of Eastern Indonesia which are above National Poverty for the 2006–2022 Period

In: Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023)

Author

Listed:
  • Magdalena Silawati Samosir

    (Hasanuddin University, Economics Doctoral Program Student, Postgraduate Faculty of Economics and Business)

  • Abd. Hamid Paddu

    (Hasanuddin University, Faculty of Economics and Business)

  • Agussalim

    (Hasanuddin University, Faculty of Economics and Business)

  • Sabir

    (Hasanuddin University, Faculty of Economics and Business)

Abstract

Poverty is still a big problem related to many aspects, such as political, cultural, economic, and social; every country, including Indonesia, is pursuing encouragement from various sides; many empirical studies are also developing, including focusing on the fiscal side. However, it cannot be denied that poverty behavior in research varies. Fiscal decentralization is leading to more allocative targets. A big boost from the fiscal side is hoped to reduce the poverty rate. This paper aims to analyze the impact of fiscal decentralization on poverty in areas with high levels of poverty above national poverty, where nine provinces in Eastern Indonesia are the research locus with the time series data range used from 2006 to 2009 and using data secondary. The results of the transfer fund regression test are divided into four independent variables: DAK, DAU, DBH, and Fiscal independence on the dependent variable poverty shows that simultaneously, DAK, DAU, DBH, and Fiscal independence have an effect on poverty and partially the impact of DAK, DAU and fiscal independence is significant on poverty where DBH has a positive effect while DAK, DAU and fiscal independence has a negative effect.

Suggested Citation

  • Magdalena Silawati Samosir & Abd. Hamid Paddu & Agussalim & Sabir, 2024. "The Impact of Fiscal Decentralization on Poverty in the Nine Provinces of Eastern Indonesia which are above National Poverty for the 2006–2022 Period," Advances in Economics, Business and Management Research, in: Arianto Patunru & Mubariq Ahmad & Mursalim Nohong & Arifuddin Arifuddin & Anas Iswanto Anwar & Rakhm (ed.), Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023), pages 297-308, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-400-6_22
    DOI: 10.2991/978-94-6463-400-6_22
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