The Impacts of Fiscal Decentralization, Institutional Transformation, and Regional Revenue on Income Disparities between Provinces in Indonesia

Mudayen, Yohanes Maria Vianey; Maridjo, Herry

doi:10.14414/jebav.v20i2.878

Cited by 5 publications

(4 citation statements)

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“…A similar research finding also articulated that fiscal decentralization did not impact income inequality (Cevik & Correa-Caro, 2020;Fan et al, 2020). Likewise, Mudayen & Maridjo (2017) also found an inverse relationship between special allocation funds and income inequality between provinces in Indonesia. The special allocation fund for assignment supports accelerating the development of basic service infrastructure focused on priority locations (sub-districts) in the district/city.…”

Section: Etikonomisupporting

confidence: 54%

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

Khusaini,

Mardisentosa,

Putro

2023

Etikonomi

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Fiscal transfer policies and road infrastructure are essential in reducing inequality in Indonesia. However, previous research examining the effect of fiscal transfer policies and road infrastructure still came up with inconclusive findings, thus making it necessary to conduct further research on rural, urban, and sub-national areas in Indonesia. This study examines the impact of fiscal transfer policies and road infrastructure on reducing income inequality in rural, urban, and sub-national areas. The authors utilized time-series data from 2012 to 2021 and 34 provinces. The fixed effect GLS model showed that Kuznets' hypothesis existed at rural, urban, and sub-national levels. The results also showed that the special allocations fund significantly reduced income inequality in rural, urban, and sub-national areas. However, road infrastructure was significant only in urban areas. The findings suggest that the special allocation fund policy can be expanded in scope and increased in number to accelerate the reduction in income inequality.JEL Classification: O15, L92, O18, O23

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Section: Etikonomisupporting

confidence: 54%

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

Khusaini,

Mardisentosa,

Putro

2023

Etikonomi

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“…Dalam pelaksanaan desentralisasi fiskal itu sendiri, dikenal adanya filosofi money follow function sebagai prinsip utama yang harus diperhatikan dan dilaksanakan (Fatoni, 2020;Haryanto, 2018;Mudayen and Maridjo, 2018;Siregar and Badrudin, 2017). Prinsip tersebut mengandung makna bahwa segala bentuk penyerahan kewenangan Pemerintah Pusat kepada Pemerintah Daerah, seyogianya disertai dengan penyerahan sumber-sumber pendanaannya (Bahl, 2000;Korompot and Warongan, 2017).…”

Section: Pendahuluanunclassified

Desentralisasi Dan Efisiensi Belanja Fungsi Pendidikan Serta Implikasinya Terhadap Kesejahteraan Masyarakat Di Propinsi Sulawesi Selatan

Iskandar

2021

JIA

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This study aims to analyze: (i) the level of efficiency of regional spending of educational functions; (ii) the impact of fiscal decentralization on the spending efficiency; and (iii) the implications of education spending efficiency on the level of welfare in the region. The research used quantitative approach with Data Envelopment Analysis (DEA) and Dinamic Generalized Method of Moment (DGMM) analysis techniques. The results showed that the realization and utilization of education function spending in the aggregate in South Sulawesi Province is quite good, although the spending is still more allocated to government bureaucracy spending. However, the results of efficiency testing by DEA method show that in most districts/cities in South Sulawesi Province, the realization and utilization of such spending is relatively less efficient. From the results of Dynamic Panel Data Testing (DGMM), the findings were obtained that fiscal decentralization in the form of Local Own-Source Revenue had a positive and significant impact on the education spending efficiency, while the fiscal decentralization policy in the form of Balance Fund, negatively influential but insignificant. In terms of good governance, the variable interaction between fiscal decentralization in the form of Local Own-Source Revenue and opinion from BPK on LKPD in districts/cities negatively and significantly affects the efficiency of education spending. While the variable interaction between fiscal decentralization both in the form of Balance Fund and opinion from BPK on LKPD in districts/cities has a positive and significant effect on the efficiency of education spending. The increase in the efficiency of education spending will be significantly followed by the improvement of the welfare of the community. Meanwhile, fiscal decentralization policy in the form of Local Own-Source Revenue has a positive and significant effect.

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“…This in turn catalyzes growth. The literature reveals that tax revenue, amidst many sources of government funds, constitutes the main source of government revenue globally (see Mudayen and Maridjo, 2018; Ama and Omodero, 2017; Sule, 2016; Nwosu and Okafor, 2014). Conversely, various studies have also identified oil proceeds, grants, national savings, aid, and debts as essential sources of government revenue (Okwori and Sule, 2016; Onyele and Nwokoacha, 2016).…”

Section: Introductionmentioning

confidence: 99%

Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria

Rotimi

John

Rotimi

et al. 2022

Studia Universitatis „Vasile Goldis” Arad – Economics Series

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Inadequate revenue generation impedes economic growth. It retards the overall economic growth and behavior. It delays government decision formulation on expenditure. The issue has lacked attention from academics. Consequently, this study focuses on the relationship between revenue generation and economic growth in Nigeria. It employed time series data sourced from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) from 1981–2018. Contributing to the debate on the revenue mobilization and economic growth nexus, the study used multiple regression to estimate the impact of government revenue mobilization on economic growth in Nigeria. Findings revealed that domestic debts and non-oil (NOIL) revenue positively and significantly impact economic growth while external debts and oil revenue revealed otherwise. Based on the findings, the study concluded that government revenue impacts economic growth. Consequently, the study recommends economic diversification through strategic programs aimed at enhancing growth rather than remaining a mono-economy. Furthermore, it recommends that the government should review the existing revenue mobilization strategy– especially the multifarious non-oil revenue bases to ensure improved revenue remittances. The study also recommended the need to formulate policies that will guarantee better utilization of both domestic and foreign loans with the aim of increasing productivity and enhancing revenue mobilization. It is also recommended that borrowing should be considered a last resort to fund government projects, and where it is unavoidable such borrowing should be limited to domestic debt (DD).

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The Impacts of Fiscal Decentralization, Institutional Transformation, and Regional Revenue on Income Disparities between Provinces in Indonesia

Cited by 5 publications

References 0 publications

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

Fiscal Transfer Policies and Road Infrastructure Reduce Income Inequality in Rural-Urban Areas

Desentralisasi Dan Efisiensi Belanja Fungsi Pendidikan Serta Implikasinya Terhadap Kesejahteraan Masyarakat Di Propinsi Sulawesi Selatan

Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria

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