THE EFFECT OF FISCAL DECENTRALIZATION ON ECONOMIC GROWTH (A CASE STUDY OF KUDUS REGENCY)
Indonesia has been undergoing a reform process since the decentralization policy implemented in 2001. In terms of financing, the central government has run a fiscal decentralization policy as a strategy to accelerate regional development. This fiscal decentralization policy has also brought major ch...
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| Format: | Theses and Dissertations NonPeerReviewed |
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[Yogyakarta] : Universitas Gadjah Mada
2013
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| Online Access: | https://repository.ugm.ac.id/123194/ http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=63305 |
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| Institution: | Universitas Gadjah Mada |
| Summary: | Indonesia has been undergoing a reform process since the decentralization policy implemented in 2001. In terms of financing, the central government has run a fiscal decentralization policy as a strategy to accelerate regional development. This fiscal decentralization policy has also brought major changes in revenue, expenditure and economic growth of the Regency of Kudus, Indonesia (Kabupaten Kudus). This research is intended to scrutinize the implementation of fiscal decentralization in Kabupaten Kudus. Besides looking at various practices, it also attempts to examine the influence of fiscal decentralization on the economic growth in Kabupaten Kudus. The analysis of the research will focus on the indicator of fiscal decentralization, which is government expenditure, especially development expenditure in the form of infrastructure expenditure. The research employs secondary data from the Local Development Planning Agency, Local Revenue and Financial Management Agency, Local Central Bureau of Statistics of Kabupaten Kudus between the period of 1998 up to 2010. Data analysis is conducted by using qualitative analysis and quantitative analysis in the form of comparative analysis. The results of this research show that, first fiscal decentralization in Kabupaten Kudus has been performing quite well. Local governments can increasingly generate local revenue and manage the expenditure for public welfare too. However, continuous improvement still needs to be carried out so the regional community can further enjoy its benefits. Second, fiscal decentralization has a positive effect on the overall economic growth in Kabupaten Kudus. |
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