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The evaluation of the implementation of regional autonomy in Indonesia

Author

Listed:
  • Rudy Badrudin
  • Baldric Siregar

    (Sekolah Tinggi Ilmu Ekonomi (STIE) YKPN, Yogyakarta, Indonesia
    Sekolah Tinggi Ilmu Ekonomi (STIE) YKPN, Yogyakarta, Indonesia)

Abstract

The implementation of regional autonomy has been running nearly 15 years. In fact, the purpose of regional autonomy for improving the welfare has not been fully achieved. This study aims to evaluate the implementation of regional autonomy in improving the welfare by using capital expenditure and growth as an intervening variable. We use the data of 461 counties and cities, the period of 2006-2013, Partial Least Square for testing hypotheses. Empirical evidence shows that decentralization significantly effect on capital, growth, and welfare. Capital has a significant effect on growth but does not has a significant effect on welfare. Growth has a significant effect on welfare.

Suggested Citation

  • Rudy Badrudin & Baldric Siregar, 2015. "The evaluation of the implementation of regional autonomy in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 1-11, April.
    • Handle: RePEc:uii:journl:v:7:y:2015:i:1:p:1-11
    DOI: 10.20885/ejem.vol7.iss1.art1
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    References listed on IDEAS

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    2. Nadia Fiorino & Emma Galli & Ilaria Petrarca, 2012. "Corruption and Growth: Evidence from the Italian Regions," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 126-144, December.
    3. Shelton, Cameron A., 2007. "The size and composition of government expenditure," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2230-2260, December.
    4. Rudy Badrudin, 2011. "Effect of fiscal decentralization on capital expenditure, growth, and welfare," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(3), pages 211-223, April.
    5. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    6. Pitri Yandri, 2012. "Autonomy policy and social welfare in Tangerang city," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 52-62, April.
    7. Pitri Yandri, 2012. "Autonomy Policy And Social Welfare In Tangerang City," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 52-62.
    8. Matsui, Kazuhisa, 2005. "Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 43(1), pages 171-189, March.
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    Cited by:

    1. Wahyudi & Imam Mujahidin Fahmid & Darmawan Salman & Sultan Suhab, 2022. "Consistency of Central and Regional Planning in the Agricultural Sectors and the Factors Affecting It in Indonesia," Sustainability, MDPI, vol. 14(23), pages 1-23, December.
    2. Rudy Badrudin & Manggar Wulan Kusuma & Ranti Yulia Wardani, 2018. "The inclusive economic development model in Sulawesi island," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 128-136, Oktober.
    3. Khasandy, Elleriz Aisha & Badrudin, Rudy, 2019. "The Influence of Zakat on Economic Growth and Welfare Society in Indonesia," MPRA Paper 91574, University Library of Munich, Germany.
    4. Fafurida & Erliz Nindi Pratiwi, 2017. "Financial independence of regencies and cities in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(2), pages 199-209, April.
    5. Manggar Wulan Kusuma & Rudy Badrudin, 2016. "Fiscal decentralization effect on economic growth in Bali," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(2), pages 136-147, April.

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    More about this item

    Keywords

    autonomy; capital expenditure; growth; welfare;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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