The Effect of Fiscal Decentralization, Financial Performance and Human Development Index on Economic Growth in Makassar City for the 2011–2021 Period

Abstract

Economic growth is the main target in the economic development of an area as well as in the city of Makassar where local governments are required to maintain the stability of economic growth in the region. The Fiscal Decentralization in Indonesia has been applied since 2000, the consequences of this policy are given the financial to local governments. However, there are several issues which are whether the delegation of authority given by the central government to the local governments that can contribute to economic growth in the region in the implementation of authority. Fiscal decentralization is one of the indicators affecting economic growth in line with financial performance and the Human Development Index. The purpose of this research is to find out how big the influence of fiscal decentralization, financial performance and the Human Development Index on economic growth in Makassar City for the period 2011 to 2021. The data in this study are secondary data taken at the regional Finance and Assets Office. and the office of the Central Bureau of Statistics. By using the multiple linear regression method and using SPSS application tools, the results of the study were found. Based on the partial test results indicate that Fiscal Decentralization and HDI have a negative and insignificant effect on economic growth, while the financial performance variable has a positive and significant effect on economic growth in Makassar city.