IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v8y2020i3p72-d410053.html
   My bibliography  Save this article

The Impact of Special Allocation Fund (DAK) for Health on Achievements of Health Development Performance in Indonesia

Author

Listed:
  • Agnes Putri Apriliani

    (Master Program of Economic Planning and Public Policy, Faculty of Economics and Business, Universitas Indonesia, Jakarta 10430, Indonesia)

  • Khoirunurrofik Khoirunurrofik

    (Master Program of Economic Planning and Public Policy, Faculty of Economics and Business, Universitas Indonesia, Jakarta 10430, Indonesia
    Department of Economics, Faculty of Economics and Business and Institute for Economic and Social Research (LPEM), Universitas Indonesia, Salemba Raya 4, Jakarta 10430, Indonesia)

Abstract

In the implementation of decentralization, the Special Allocation Fund (DAK) for health is given to certain areas of Indonesia to support health financing. The performance of this financing, along with national health development priorities’ achievements, is illustrated through the indicators of coverage of deliveries in health care facilities (PF) and coverage of first neonatal visits (KN1). Yearly increases in the health DAK budget have not been accompanied by increases in these coverages, and there are still significant disparities between regions. Using secondary data at the district/city level for 2014–2017, this study aims to investigate the impact of health DAK on coverage of PF and KN1. The analytical method deployed is linear regression of panel data using a fixed-effects model. The results show that in the short term, health DAK has a positive but insignificant effect on PF and KN1 coverage. However, health DAK has a positive and significant impact on PF coverage in the second year. Impact on KN1 coverage is unfeasible, even over a period of two years. These results indicate that the processes of planning, budgeting, and administering of health DAK require improvement so that benefits can be felt in the short term through better innovations in health programs. Nevertheless, given that our findings are based on a short period of study, the results from such analyses should consequently be treated with the utmost caution Therefore, future research should target a longer period of data collection to detect more trusty lagged effects and structural breaks of a policy intervention.

Suggested Citation

  • Agnes Putri Apriliani & Khoirunurrofik Khoirunurrofik, 2020. "The Impact of Special Allocation Fund (DAK) for Health on Achievements of Health Development Performance in Indonesia," Economies, MDPI, vol. 8(3), pages 1-15, September.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:3:p:72-:d:410053
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/8/3/72/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/8/3/72/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anila Channa & Jean-Paul Faguet, 2016. "Decentralization of Health and Education in Developing Countries: A Quality-Adjusted Review of the Empirical Literature," The World Bank Research Observer, World Bank, vol. 31(2), pages 199-241.
    2. Sanjeev Gupta & Marijn Verhoeven & Erwin R. Tiongson, 2003. "Public spending on health care and the poor," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 685-696, August.
    3. D. Cantarero & Marta Pascual, 2007. "Analysing the impact of fiscal decentralization on health outcomes: empirical evidence from Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 15(2), pages 109-111.
    4. Abay Asfaw* & Klaus Frohberg & KS James & Johannes Jütting, 2007. "Fiscal decentralization and infant mortality: empirical evidence from r ural India," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(1), pages 17-35, September.
    5. Dolores Jimenez Rubio, 2011. "The impact of decentralization of health services on health outcomes: evidence from Canada," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3907-3917.
    6. John Nixon & Philippe Ulmann, 2006. "The relationship between health care expenditure and health outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 7(1), pages 7-18, March.
    7. Andrew Hodge & Sonja Firth & Eliana Jimenez-Soto & Laksono Trisnantoro, 2015. "Linkages between Decentralisation and Inequalities in Neonatal Health: Evidence from Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 51(12), pages 1634-1652, December.
    8. Trisya Rakmawati & Reece Hinchcliff & Jerico Franciscus Pardosi, 2019. "District‐level impacts of health system decentralization in Indonesia: A systematic review," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(2), pages 1026-1053, April.
    9. Hao, Yu & Liu, Jiahui & Lu, Zhi-Nan & Shi, Ruijie & Wu, Haitao, 2021. "Impact of income inequality and fiscal decentralization on public health: Evidence from China," Economic Modelling, Elsevier, vol. 94(C), pages 934-944.
    10. Di Novi, Cinzia & Piacenza, Massimiliano & Robone, Silvana & Turati, Gilberto, 2019. "Does fiscal decentralization affect regional disparities in health? Quasi-experimental evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 78(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2024. "Health Expenditure Decentralization and Health Outcomes: The Importance of Governance," Publius: The Journal of Federalism, CSF Associates Inc., vol. 54(1), pages 59-87.
    2. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2022. "Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance," IMF Working Papers 2022/111, International Monetary Fund.
    3. Jiménez-Rubio, Dolores & García-Gómez, Pilar, 2017. "Decentralization of health care systems and health outcomes: Evidence from a natural experiment," Social Science & Medicine, Elsevier, vol. 188(C), pages 69-81.
    4. Georgios Nikolopoulos & Pantelis Bagos & Theodoros Lytras & Stefanos Bonovas, 2011. "An Ecological Study of the Determinants of Differences in 2009 Pandemic Influenza Mortality Rates between Countries in Europe," PLOS ONE, Public Library of Science, vol. 6(5), pages 1-8, May.
    5. Kayode Taiwo, 2024. "The Effect of Decentralisation on Access to Sanitation and Water Services: An Empirical Test using International Data," Hacienda Pública Española / Review of Public Economics, IEF, vol. 249(2), pages 157-180, June.
    6. Alessandra Cepparulo & Luisa Giuriato, 2022. "The residential healthcare for the elderly in Italy: some considerations for post-COVID-19 policies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(4), pages 671-685, June.
    7. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    8. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2224, African Development Bank.
    9. Noshaba Aziz & Jun He & Tanwne Sarker & Hongguang Sui, 2021. "Exploring the Role of Health Expenditure and Maternal Mortality in South Asian Countries: An Approach towards Shaping Better Health Policy," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    10. Mattos, Enlinson & Ribeiro, Fernanda Patriota Salles, 2015. "Unconditional transfers goes to health? Evidence from Brazilian municipalities," Textos para discussão 376, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    11. Eric Arthur & Hassan E. Oaikhenan, 2017. "The Effects of Health Expenditure on Health Outcomes in Sub-Saharan Africa (SSA)," African Development Review, African Development Bank, vol. 29(3), pages 524-536, September.
    12. Blázquez-Fernández, Carla & Cantarero-Prieto, David & Pascual-Sáez, Marta, 2014. "Experiencia comparada europea y el reto de la descentralización sanitaria/Comparative European Experience and the Decentralization Health Challenge," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 841-860, Mayo.
    13. Gallet, Craig A. & Doucouliagos, Hristos, 2017. "The impact of healthcare spending on health outcomes: A meta-regression analysis," Social Science & Medicine, Elsevier, vol. 179(C), pages 9-17.
    14. Deepak Kumar Behera & Umakant Dash, 2020. "Is health expenditure effective for achieving healthcare goals? Empirical evidence from South-East Asia Region," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 593-618, June.
    15. Martínez André & Rodríguez-Zamora Carolina, 2011. "An Evaluation of the 1997 Fiscal Decentralization Reform in Mexico: The Case of the Health Sector," Working Papers 2011-16, Banco de México.
    16. Castro, Marcelo Araújo & Mattos, Enlinson & Patriota, Fernanda, 2016. "Spatial spillovers and political coordination in public health provision," Textos para discussão 417, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    17. Craig Arthur Gallet, 2017. "The Impact of Public Health Spending on California STD Rates," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 23(2), pages 149-159, May.
    18. Emanuele Arcà & Francesco Principe & Eddy Van Doorslaer, 2020. "Death by austerity? The impact of cost containment on avoidable mortality in Italy," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1500-1516, December.
    19. Jiménez-Rubio, Dolores, 2011. "The impact of fiscal decentralization on infant mortality rates: Evidence from OECD countries," Social Science & Medicine, Elsevier, vol. 73(9), pages 1401-1407.
    20. Rafaela Oliveira & Gonçalo Santinha & Teresa Sá Marques, 2023. "The Impacts of Health Decentralization on Equity, Efficiency, and Effectiveness: A Scoping Review," Sustainability, MDPI, vol. 16(1), pages 1-32, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:8:y:2020:i:3:p:72-:d:410053. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.