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All Journal Signifikan : Jurnal Ilmu Ekonomi Bulletin of Social Studies and Community Development
Wiwiek Rindayati
Faculty of Economics and Management, IPB University
Economics, Econometrics & Finance

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The Impact of Fiscal Decentralization on Human Development Outcomes and Income Equality at the Provincial Level in Indonesia Wiwiek Rindayati; Lailatun Nikmah; Gerhana Gerhana; Zhena Nofhatiaz Zahra
Bulletin of Social Studies and Community Development Vol 5, No 3 (2026): Bulletin of Social Studies and Community Development
Publisher : Institute of Multidisciplinary Research and Community Service

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61436/bsscd/v5i3.pp161-176

Abstract

Fiscal decentralization since the reform era has transformed regional development policies in Indonesia. However, its effectiveness in enhancing human development and reducing income inequality varies across regions and across the empirical literature. This study analyzes the impact of fiscal decentralization reflected through the degree of fiscal decentralization, education expenditure, and health expenditure on the Human Development Index and Gini coefficient, with poverty rate, GDP per capita, and open unemployment rate as control variables. Panel data from 34 Indonesian provinces for the period 2017-2023 were used. This study employed two types of analysis: qualitative and quantitative. Qualitative analysis was used to describe the state of fiscal decentralization, the Human Development Index, and income inequality across Indonesia’s 34 provinces from 2017 to 2023. A typological classification was then conducted to map regional conditions across four quadrants. Quantitative analysis was used to examine the impact of fiscal decentralization on the Human Development Index and income inequality at the provincial level in Indonesia. The analytical technique employed was panel data regression, combining cross-sectional and time-series data. The time-series data used covers the years 2017 to 2023, while the cross-sectional data consists of data from 34 provinces in Indonesia. Data processing was performed using Microsoft Office Excel 2021 and EViews 10. The findings indicate that fiscal decentralization has a significant positive effect on HDI (0.14) and a significant negative effect on inequality (-0.00). The research findings imply the need to enhance regional fiscal autonomy, prioritize education and health budget allocation, and optimize regional development. Keywords: Fiscal decentralization; Human development; Income inequality; Panel data
How Do Digital Readiness and Economic Growth Compare Across Income Groups? Wiwiek Rindayati; Siti Aisyah; Gerhana Gerhana; Zhena Nofhatiaz Zahra
Signifikan: Jurnal Ilmu Ekonomi Vol. 15 No. 2 (2026)
Publisher : Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15408/sjie.v15i2.51553

Abstract

Research Originality: This study provides new empirical evidence on the global impact of digital readiness on economic growth by comparing high-, middle-, and low-income countries. Unlike previous studies focusing on single countries or regions, this research examines whether digital readiness contributes differently across income groups. Research Objectives: This study aims to explore the development of digital readiness and analyze its effect on economic growth across countries by income level. Research Methods: The study uses descriptive analysis and panel-data regression across 105 countries for 2019–2023. Digital readiness is measured by the Networked Readiness Index, comprising 46 indicators. PCA is applied to construct the index, and panel regression examines the relationship between digital readiness and economic growth across income groups. Empirical Results: Digital readiness significantly boosts economic growth across all income groups, with the strongest effect in high-income countries, a moderate effect in middle-income countries, and the weakest in low-income countries. Implications: The findings show that digital readiness has become a key driver of global economic growth, reflecting increasing access to and adoption of digital technologies across countries at different income levels. JEL Classification: O33, O40, F63 How to Cite:Rindayati, W., Aisyah, S., Gerhana, & Zahra, Z. N. (2026). How Do Digital Readiness and Economic Growth Compare Across Income Groups?. Signifikan: Jurnal Ilmu Ekonomi, 15(2), 355-372. https://doi.org/10.15408/sjie.v15i2.51553.
Co-Authors Gerhana Gerhana Gerhana Gerhana Lailatun Nikmah Siti Aisyah Zhena Nofhatiaz Zahra Zhena Nofhatiaz Zahra