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The Impact Of Fiscal Decentralization On Income And Education Inequality Through Economic Growth In East Java

Author

Listed:
  • Muhammad Abdul Ghofur

    (Economics Faculty, Universitas Negeri Surabaya, Surabaya, Indonesia)

  • Lucky Rachmawati

    (Economics Faculty, Universitas Negeri Surabaya, Surabaya, Indonesia)

Abstract

There are still many districts in East Java Province that are categorized as underdeveloped regions, which means that the region has low economic growth with a high income and education inequality. An economic model analysis that illustrates how the impact of fiscal decentralization has been exercised on income inequality and inequality of education through economic growth is needed. The analysis model used is path analysis to determine the direct and indirect impact of fiscal decentralization on income and education inequality through economic growth. The data used in the study were panel data from 2008 to 2015 collected from 29 districts in the East Java Province. The results of the study indicate that the implementation of the fiscal decentralization policy has not been able to encourage economic growth and reduce the number of income inequality and inequality of education. Decentralization makes income inequality even more intense. Economic growth has not been able to reduce the income inequality, but it can reduce the rate of education inequality.

Suggested Citation

  • Muhammad Abdul Ghofur & Lucky Rachmawati, 2019. "The Impact Of Fiscal Decentralization On Income And Education Inequality Through Economic Growth In East Java," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(Special), pages 90-98, May.
    • Handle: RePEc:ora:jrojbe:v:4:y:2019:i:special:p:90-98
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    fiscal decentralization; educational inequality; income inequality; economic growth.;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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