Human Development Index: Examining the Effect of Fiscal Decentralization and the Moderating Role of Private Investment
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 09
Abstract
Bali Province is a tourist destination and has rapid economic growth in Indonesia, but Bali Province faces several challenges in terms of the Human Development Index (HDI). The achievement of HDI is the responsibility of local governments, especially in autonomous regions. With regional autonomy, the government has the flexibility to increase the degree of fiscal decentralization and design appropriate budget allocations. Bali Province is also one of the investment destinations for investors which certainly has an impact on people's lives. This research will try to examine the effect of the level of fiscal decentralization of a region on the achievement of the Human Development Index. This research also tries to use the role of private investment as a moderator. The research data comes from the financial statements and publications of the Central Bureau of Statistics of Bali Province for the period 2012-2021. The results of data testing show that fiscal decentralization has a positive and significant effect on HDI. Private investment has not been able to moderate the relationship between fiscal decentralization and HDI. When a region has a high level of financial independence, of course, the local government can more freely determine regional spending policies, especially to sectors that can increase HDI. In addition, local governments also need to pay attention to investments made by the private sector, so that they are in line with the government's objectives in increasing HDI.
Authors and Affiliations
I Made Aditya Pramartha, Gede Sanjaya Adi Putra, I Komang Putra
Keywords
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- EP ID EP727553
- DOI 10.47191/jefms/v6-i9-54
- Views 50
- Downloads 0
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