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Distributional Effect of Fiscal Decentralization In Indonesia: An Application of a Linked Econometric-IRSAM Model

Author

Listed:
  • Tirta Hidayat

    (Faculty of Economics, University of Indonesia, Jakarta)

  • Destry Damayanti

    (Center for Financial and Monetary Analysis, Ministry of Finance, Jakarta)

Abstract

Masalah hubungan pusat - daerah di Indonesia, terutama dalam kaitannya dengan alokasi subsidi, masih merupakan topik yang hangat. Pembicaraan umumnya berkisar pada apakah pemerintah daerah perlu diberikan kekuasaan yang lebih besar untuk memperoleh penerimaan dari sumber-sumbernya sendiri ataukah tidak. Tujuan utama desentralisasi semacam ini bertujuan untuk mengurangi ketergantungan pemerintah daerah terhadap subsidi dari pemerintah pusat sebagai sumber utama dana pembangunan. Masalah lain berkisar dengan masalah keadilan yang terkandung dalam sistem alokasi subsidi tersebut. Beberapa penelitian terdahulu menunjukkan bahwa alokasi subsidi memperlihatkan ketidakadilan. Artikel ini bertujuan membahas isu yang berkaitan, yakni aspek keadilan dalam pembangunan, terutama yang berkaitan dengan program desentralisasi pemerintah dengan melihat dampak dari berbagai scenario desentralisasi terhadap distribusi pendapatan regional dan output sektoral. Untuk mencapai tujuan tersebut, para penulis membahas sebuah model yang menggunakan pendekatan ekonometri dan Interregional Social Accounting Matrix (IRSAM). international trade in explaining patterns and benefits of international trade. Consequently, their predicting ability have been reduced. This article tries to review some of recent development in theories of international trade. Even though most of these theories fail to present a more applicative models for developing countries, some aspects of these models could be used to explain (or at least to understand) trade patterns in relation to economic development in LDC's. Theories reviewed in this article include inter-industry trade, technological gap and product cycle hyphothesis and trade in services. Methods for calculating performance, an indicator for comparative advantage, and its results for Indonesian export is also presented.

Suggested Citation

  • Tirta Hidayat & Destry Damayanti, 1992. "Distributional Effect of Fiscal Decentralization In Indonesia: An Application of a Linked Econometric-IRSAM Model," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 40, pages 247-278, September.
  • Handle: RePEc:lpe:efijnl:199212
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    Cited by:

    1. Hidekazu Itoh, 2016. "Understanding of economic spillover mechanism by structural path analysis: a case study of interregional social accounting matrix focused on institutional sectors in Japan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-20, December.

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