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All Journal Jurnal Ilmiah Mahasiswa FEB Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan JURNAL EKONOMI PENDIDIKAN DAN KEWIRAUSAHAAN International Journal of Supply Chain Management Jurnal Pengabdian kepada Masyarakat Nusantara Journal of Contemporary Governance and Public Policy Prima Abdika: Jurnal Pengabdian Masyarakat Economics, Business, Accounting & Society Review Journal of Development Economic and Social Studies (JDESS) Contemporary Studies in Economic, Finance and Banking (CSEFB) Economics Note
Rachmad Kresna Sakti
Mahasiswa Program Doktor Ilmu Ekonomi FEUB
Arts Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Engineering Environmental Science Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Mathematics Social Sciences Transportation Other

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Fiscal Decentralization and Regional Economic Growth: Empirical Evidence from Indonesian Districts Rahman, Ahmad Fauzi; Sakti, Rachmad Kresna; Thompson, Michael J.
Economics Note Vol. 2 No. 1 (2026): Economics Note, January 2026
Publisher : Lembaga Penelitian dan Pendidikan (LPP) Kalibra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70716/econote.v2i1.207

Abstract

Fiscal decentralization has become a central policy instrument in Indonesia’s regional development strategy since the early 2000s. However, empirical findings on its impact on regional economic growth remain inconclusive. This study examines the effect of fiscal decentralization on economic growth across Indonesian districts by synthesizing evidence from panel data–based empirical studies and contextualizing them within decentralization theory. The study adopts a qualitative systematic review and comparative empirical synthesis approach, focusing on indicators such as regional own-source revenue, intergovernmental transfers, and government expenditure. The findings indicate that fiscal decentralization generally exerts a positive influence on regional economic growth, particularly through increased local revenue capacity and productive government spending. However, the impact varies across regions due to differences in fiscal capacity, governance quality, and dependency on central government transfers. Several studies also reveal that excessive reliance on general allocation funds may weaken growth incentives. This study contributes to the literature by integrating diverse empirical results into a coherent analytical framework and highlighting policy conditions under which fiscal decentralization promotes sustainable regional growth. The findings support the need for strengthening local fiscal autonomy while improving accountability and expenditure efficiency at the district level.
The Role of Public Policy and Digital Connectivity in Driving Gdp Growth: A Cross-Country Study of Emerging Economies Sakti, Rachmad Kresna; Mubarak, Muhammad Faraz; Setyanti, Axellina Muara; Prestianawati, Silvi Asna
Economics, Business, Accounting & Society Review Vol. 5 No. 1 (2026): Economics, Business, Accounting & Society Review
Publisher : International Ecsis Association

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Abstract

This study examines how digital connectivity and public policy influence economic growth in developing countries, utilizing data from 21 nations spanning the years 2018 to 2023. The study focuses on internet adoption rates, internet speed, government policies, and GDP growth rates, employing a composite index and Panel-Corrected Standard Errors (PCSE) regression method. The findings indicate that higher internet penetration, faster internet speed, and enhanced internet security are positively associated with per capita GDP growth, highlighting the importance of digital connectivity in fostering economic development. In contrast, reliance on basic cellular connections shows a negative impact on per capita GDP, potentially due to lower productivity associated with basic mobile usage. The study also emphasizes the crucial role of public policy performance, which demonstrates a strong positive correlation with economic growth, suggesting that effective governance and well-implemented policies are essential for maximizing the benefits of digital infrastructure in driving economic progress. The study's integration of both digital connectivity variables and public policy provides new insights into the synergies between technology and governance, offering a comprehensive view of how these factors together influence economic outcomes. This approach adds valuable contributions to development economics, particularly in understanding the roles of modern digital infrastructure and policy frameworks in supporting sustainable growth in developing countries.
Co-Authors Agus Suman Agustin, Rahayu Anzelina Anggi Rahma Ativanita Aqila Raeshad Arisetyawan, Kukuh Axellina Muara Setyanti, Axellina Muara Azarya hendry christy Bintoro, Nugroho Suryo Dewana Pinasthika Lestari Dizzahara, Izhellia Oktatubela Habibi, Muhammad Rasyid Hidayah, Roisatul Kadafi, M. Amin Khotiawan, Ma'rufa Masruroh, Isna Aisyah Mohammad Irham Muqoddam Mubarak, Muhammad Faraz Mulya, Ziddan Baasith Mulyani, Cici Sri Naufal Nur Maulidi Neli Aida Paksi, Girindra Mega Peggywati, Velenza Riyanda Pranata S., Andika Nedya Purba, Agnes Sheryta Anastasya Putri, Naswa Berliana Rahmadani, Citra Rahmadhani, Kharisma Rahman, Ahmad Fauzi Raka Muhammad Ziddan Ristiana, Eka Prastya Rulita, Insyira Sabda Imani Rubiarko Salsabhila, Atira Sasongko Sasongko, Sasongko Setyo Tri Wahyudi Silvi Asna Prestianawati Suherman, Raihan Susanti, Ratna Puji Susilo . Suwandi, Bryan Zelig Thompson, Michael J. Van Indra Wiguna Wicaksono, Bagas Jiwanda