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Fiscal decentralization effect on economic growth in Bali

Author

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  • Manggar Wulan Kusuma
  • Rudy Badrudin

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

Abstract

This study aims to determine the effect of fiscal decentralization on economic growth mediated by financial performance in Bali Province. The source of data employed in this study was secondary data from the financial statement of local government in a counties/city in Bali in 2006 to 2014. The data analysis technique employed in this study was Partial Least Square (PLS). The results show that 1) fiscal decentralization was significantly influential on financial performance measured using the financial independence ratio of local government in Bali; 2) fiscal decentralization was significantly influential on financial performance measured using the ratio of conformity in Bali; 3) fiscal decentralization was significantly influential on economic growth in Bali; 4) financial performance measured using the financial independence ratio of local government had no significant effect on economic growth in Bali; and 5) finan- cial performance measured using the ratio of conformity was significantly influential on economic growth in Bali.

Suggested Citation

  • 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.
    • Handle: RePEc:uii:journl:v:8:y:2016:i:2:p:136-147
    DOI: 10.20885/ejem.vol8.iss2.art6
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    References listed on IDEAS

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    2. 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.
    3. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Maria Kovacova, 2023. "Research on Corporate Indebtedness Determinants: A Case Study of Visegrad Group Countries," Mathematics, MDPI, vol. 11(2), pages 1-30, January.

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    More about this item

    Keywords

    Fiscal; decentralization; financial; growth; government;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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