Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 16, No 2 (2024)

Threshold Levels of Environmental Quality and Fiscal Decentralization on Economic Growth in Indonesia before, during and after COVID-19 Pandemic

Malik Cahyadin (Faculty of Economics and Business Universitas Sebelas Maret)
Mehilda Rosdaliva (Faculty of Economics and Business Universitas Sebelas Maret)
Selfia Bintaringintyas (Faculty of Economics and Business Universitas Sebelas Maret)
Yunastiti Puwaningsih (Faculty of Economics and Business Universitas Sebelas Maret)
Yong Sze Wei (Faculty of Economics and Management, Universiti Teknologi MARA)



Article Info

Publish Date
11 Nov 2024

Abstract

Environmental quality can stimulate a certain level of economic growth. Besides, the fiscal decentralization will enhance economic growth by improving a better condition for a local government budget. In the COVID-19 pandemic, the government should work hard to address a higher level of economic growth. Therefore, the threshold levels of environmental quality and fiscal decentralization can be assessed to maintain economic growth in the long-run. This study estimates the threshold levels of environmental quality and fiscal decentralization on economic growth for 34 provinces in Indonesia before, during and after COVID-19 pandemic. The cross-section threshold regression was employed. The findings reveal that before COVID-19 pandemic the threshold levels of fiscal decentralization and environmental quality were 15.18% and 74.97, respectively. During COVID-19 pandemic these levels were 15.32-27.33% and 74.71-74.97, respectively. Meanwhile, after COVID-19 pandemic these levels were 11.99% and 77.69, respectively. Therefore, the local policymakers should manage the local fiscal policy under prudent and sustainable patterns to enhance the local economic growth. They should also pay more attention to qualify the certain level of environmental quality to guarantee the local green growth.

Copyrights © 2024






Journal Info

Abbrev

JESP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...