IDEAS home Printed from
   My bibliography  Save this paper

The Financing Of Regional Development And Economic Growth In West Java Province


  • Rina Indiastuti

    () (Department of Economics, Padjadjaran University)


In the context of recent decentralization of regional development in Indonesia, the local authorities and communities need to understand by how potential sources for financing regional development effect the economic growth. There is three sources of financing such as government, private investor and local communities. The purpose of this paper is to explain the role of financing resources of the economic sectors in regional economic growth. Using panel data generated from economic sectors among 20 kabupaten/kota (municipalities) in Jawa Barat Province during 1991-2000 I examine the effect in economic growth of different financing sources. The pattern of development financing was varied among regions. The financing concentration was occurred in some regions where have good available infrastructures and characterised with industry-based development. The results from empirical analysis suggest that the impact of both government and private financing on economic growth is significant in industry-based regions. In the period analysis, communities financing through bank loans supported the regional development significantly in both industry-based and agro-based regions. The implication based on this study is that the local authority should encourage the private financing sources to promote local economic growth.

Suggested Citation

  • Rina Indiastuti, 2003. "The Financing Of Regional Development And Economic Growth In West Java Province," Working Papers in Economics and Development Studies (WoPEDS) 200304, Department of Economics, Padjadjaran University, revised Jul 2003.
  • Handle: RePEc:unp:wpaper:200304

    Download full text from publisher

    File URL:
    File Function: First version, 2003
    Download Restriction: no

    More about this item


    regional development; finance;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unp:wpaper:200304. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arief Anshory Yusuf). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.