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The Influence of Fiscal Decentralization of Economic Growth in Nias Islands Telaumbanua, Ya'aman; Sirojuzilam, Sirojuzilam
Indonesian Journal of Multidisciplinary Science Vol. 2 No. 10 (2023): Indonesian Journal of Multidisciplinary Science
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/ijoms.v2i10.592

Abstract

In general, the fiscal decentralization policy has succeeded in reducing fiscal disparities between levels of government and between regions, as well as encouraging improvements in public services and competitiveness in the regions. Increasing regional revenues from balancing funds, the authority to determine expenditure allocations and the superiority of the position of regional governments that are closer to the people are able to increase economic efficiency and allocate more priority spending according to community needs. However, the conditions of each region in Indonesia vary greatly, so that the impact of fiscal decentralization policies on regional economic growth also varies. On this occasion, research was conducted to analyze the effect of fiscal decentralization on the economic growth of the Nias Islands. Fiscal decentralization analysis uses income indicators, expenditure indicators and autonomy indicators and includes the population growth factor as a control variable. This study uses panel data from five districts/cities in the Nias Islands during the 2010-2021 period using the Fixed Effect Model method. Based on the results of panel data estimation in this study, the results show that fiscal decentralization has proven to have a significant effect on economic growth in the Nias Islands.
Quality Economic Growth: Is It Possible to Achieve by An Archipelago Area? Telaumbanua, Ya'aman
Asian Journal of Social and Humanities Vol. 2 No. 9 (2024): Asian Journal of Social and Humanities
Publisher : Pelopor Publikasi Akademika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59888/ajosh.v2i9.340

Abstract

The purpose of this study, the researcher uses descriptive and verifiable analysis methods. Verifiable analysis through panel data regression analysis, by choosing the best approach from the Common Effect Model, Fixed Effect Model or Random Effect Model. The research variables consisted of natural resource factors (F_SDA) in the primary sector which were proxied from the contribution of the agriculture, forestry and fisheries sectors as well as the mining and quarrying sector to GDP, Foreign Investment (FDI), Government Expenditure (Blj_P), Average School Length (R_LS), Population Growth (Pert_Pduk) as free variables and Economic Growth (Pert_Ek) and Employment Opportunity Rate (TKK). Secondary data was obtained from BPS, the Ministry of Finance of the Republic of Indonesia, SatuData of the Ministry of Manpower. The type of data is panel data that was studied during the time period 2010 to 2019. The results of the study show that relatively high economic growth in areas with archipelagic characteristics does not have an impact on increasing employment opportunities. The F_SDA and FDI variables have no effect on economic growth in archipelagic areas, the Blj_P variables are influential and significant, while Pert_Pduk have an effect but not significantly on economic growth in archipelagic areas. The human resource factor variable that is proxied from the average of a long time (R_LS) has an effect but is negative and significant on economic growth in the archipelago. Overall, from this study, it was found that economic growth in the archipelago during the period from 2010 to 2019 was not of good quality.