Laporkan Masalah

Fiscal decentralization and government size in Indonesia

UTAMA, Antonius Waluya Budi, Prof. Yoichi Okita

2010 | Tesis | S2 Magister Ekonomika Pembangunan

This study examines the relationship between fiscal decentralization and government size in Indonesia. The empirical results, based on panel data evidence from all provinces and municipalities throughout Indonesia from the period 2001– 2006, suggest that fiscal decentralization is associated with larger local government size. In the case of the collusion hypothesis, grants have a positive relationship with government size but revenue sharing has a negative relationship with government size. This result indicates that collusion occurs in grant transfers rather than in revenue sharing.

Kata Kunci : Fiscal decentralization,Government size,Collusion


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