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All Journal Jurnal Ekonomi, Bisnis dan Kewirausahaan (JEBIK) Jurnal Ekonomi dan Bisnis EKO-REGIONAL JURNAL PENGEMBANGAN EKONOMI WILAYAH Journal of Economic, Management, Accounting and Technology (JEMATech) EQIEN - JURNAL EKONOMI DAN BISNIS ISOQUANT : Jurnal Ekonomi, Manajemen dan Akuntansi Performance Darma Sabha Cendekia Lingkar Ekonomika: Jurnal Ilmu Ekonomi dan Studi Pembangunan Economics Development Analysis Journal Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah Eko-Regional: Jurnal Pembangunan Ekonomi Wilayah
Badriah, Lilis Siti
Jurusan Ilmu Ekonomi dan Studi Pembangunan Universitas Jenderal Soedirman
Arts Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Energy Environmental Science Public Health Social Sciences

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Journal : EKO-REGIONAL JURNAL PENGEMBANGAN EKONOMI WILAYAH

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Does Government Fragmentation and Fiscal Decentralization Constrain Leviathan? New Evidence From Indonesia Experience Zulyanto, Aan; Badriah, Lilis Siti
EKO-REGIONAL Vol 19 No 1 (2024)
Publisher : Jurusan Ilmu Ekonomi dan Studi Pembangunan Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32424/1.erjpe.2024.19.1.3593

Abstract

Since the reform era in 1999, Indonesia has made a regional expansion policy and widespread fiscal decentralization policy. During the 1999-2014 period, Indonesia's autonomous regions increased by 70 percent compared to the previous period. Based on the Leviathan hypothesis, the two policies should create a competitive climate and increase the efficiency of government spending. This study aims to analyze the application of the Leviathan hypothesis in the policy of regional expansion and fiscal decentralization in Indonesia. The study uses panel data regression from 32 provinces during the 2002-2020 period. The study results show that the Leviathan hypothesis does not apply to Indonesia's regional expansion and fiscal decentralization policies. This condition happened because the division of regions in Indonesia was caused more by political interests. Most regional revenues still depend on transfers from the central government. The results of this study imply that to obtain tangible benefits from regional expansion, a thorough understanding of regional economic potential is needed, and the need to improve the quality of human resources to optimally utilize regional potentials so that regional independence will be created.
Co-Authors Aan Zulyanto, Aan Afifah, Nindita Agus Arifin, Agus Amalia, Dwi Cahya Anggorojati, Raden Roro Siti Binar Arif Mulyadi Armida Salsiah Alisjahbana Azhar, Luthfi Faishal Bambang Bambang Binardjo, Goro Cahyo, Heru Dedi Supriadi Diah Retnowati Diah Setyorini Gunawan DIJAN RAHAJUNI, DIJAN Fatmawati, Ayu Kurnia Febriyana, Isna Ferry Hadiyanto Hardiyanto, Ferry Himawan, Muhammad Deni Kodrat Wibowo Maemonah, Maemonah Pudjianto, Hary Purnomo, Sodik Dwi Rakhmat Priyono, Rakhmat Sambodo, Herman Saputri, Amelia Wicaksono, Muhammad Dicky Zumaeroh -