Fiscal Decentralisation’s Effect on Indonesia Economic Growth

Authors

  • Syawal Zakaria Universitas Darussallam
  • Farida Mony Universitas Darussalam Ambon, Indonesia
  • Ilham Habibi Zakaria Universitas Sahid Jakarta, Indonesia
  • Jusup Sahupala Universitas Darussalam Ambon, Indonesia
  • Junaidi Junaidi Universitas Muhammadiyah Palopo

Abstract

This study tries to assess how fiscal decentralization which measured by income, expenditure, population increase, human development, regional investment, open trade influencing local government GDP. Using panel data covering Indonesia’s districts from 2013 to 2023. Fixed-effect method was used to confirm financial decentralization on economic growth on Indonesian districts. Fiscal decentralized as one of the local government budget sources have a positive and significant effect on region economic growth. Furthermore, local government expenditure has strong correlation to local people human resources development, investment, and open trade. The central and local government should process of shifting the budget and expenditure effectively. As regulator, central government need to offer regulation the transfer system design and surveilance the budget distribution. This study contributes to economic and government literature by investigate the role of fiscal decentralisation on Indonesia’s district economic growth based on economic and social indicatior.

Downloads

Published

2025-10-24

How to Cite

Zakaria, S. ., Mony, F. ., Habibi Zakaria, I. ., Sahupala, J. ., & Junaidi, J. (2025). Fiscal Decentralisation’s Effect on Indonesia Economic Growth. Economic Analysis Review, 40(2), 101–119. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/1126

Issue

Vol. 40 No. 2 (2025)

Section

Articles

License

Upon submission of an article, authors are asked to indicate their agreement to abide by an open-access license. The license permits any user to download, print out, extract, archive, and distribute the article, so long as appropriate credit is given to the authors of the work. The license ensures that your article will be as widely available as possible and that your article can be included in any scientific archive. Please read about the Creative Commons Attribution License before submitting your paper. 
Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 3.0 License