The Impact of Fiscal Decentralization of Expenditure on Economic Performancein Southeast Sulawesi

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 12

Year of Publication : 2019

Authors : Muhamad Armawaddin, Pasrun Adam, Muh. Yani Balaka, La Ode Suriadi

10.14445/23939125/IJEMS-V6I12P103

How to Cite?

Muhamad Armawaddin, Pasrun Adam, Muh. Yani Balaka, La Ode Suriadi, "The Impact of Fiscal Decentralization of Expenditure on Economic Performancein Southeast Sulawesi," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 12, pp. 19-29, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I12P103

Abstract:

The main objective of this study is: to investigate the effect of fiscal decentralization on expenditure on economic performance in Southeast Sulawesi.
Another aim is to find out whether the new autonomous region has efficiently allocated its regional expenditure and its impact on economic performance. This type of data uses secondary data in the form of Regional Budget and Revenue and Gross Regional Domestic Product data for 2014-
2018, sourced from the Ministry of Finance of the Republic of Indonesia and the Central Statistics Agency. The analysis unit uses districts and cities in
Southeast Sulawesi, which 17 districts and cities. Data analysis uses the Least Square Structural- Partial Equation Model approach with the help of
Smart-PLS 2.0 software. The results show that fiscal decentralization of expenditure has a positive and significant impact on economic performance in Southeast Sulawesi. In relation to the allocation of government spending on public services, it has  been done efficiently, but not yet optimally. The impact of regional autonomy on economic performance is positive for new autonomous regions and old regions.

Keywords:

Decentralization expenditure, Economic Performance, SEM-PLS.

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