The Impacts of Fiscal Decentralization, Institutional Transformation, and Regional Revenue on Income Disparities between Provinces in Indonesia
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2017, Vol 20, Issue 3
Abstract
This study aims to determine the impacts of fiscal decentralization, institutional transformation, and regional revenue to the income disparity among the provinces in Indonesia. This study uses panel data with the number of runs 528 pieces of data that includes 33 provinces in Indonesia period 2000-2015. The data were taken from the Central Bureau of Statistics (BPS) and Bank Indonesia. They were analyzed using a multiple linear regression analysis. The results show that tax revenue sharing fund and natural resources revenue sharing fund impact positive and significant on the income disparity among the provinces in Indonesia, while the general allocation fund, special allocation fund, institutional transformation, and the local revenue do not significantly affect the income disparity among the provinces in Indonesia. Tax and natural resources revenue sharing fund are actually exacerbating the gap of income distribution among regions in Indonesia. The implication of this study is that the government needs to review the allocation mechanism of General Allocation Fund, Special Allocation Fund, Tax Revenue Sharing Fund and Natural Resources Revenue Sharing Fund in order to serve as an instrument of fiscal capacity equalization of each region as well income distribution equalization among regions in Indonesia. The local government needs to continue improving the local revenue through the optimization of local tax revenue, regional retribution, profits of Regional Owned Enterprises, and other legitimate acceptances.
Authors and Affiliations
Yohanes Maria Vianey Mudayen, Herry Maridjo
Keywords
Related Articles
- EP ID EP466152
- DOI 10.14414/jebav.v20i2.878
- Views 124
- Downloads 0
Does an ethic matter to predict misreporting behavior?
This study was conducted to verify the assertions of various previous studies examining the relationship between individual moral reasoning and ethical behavior. Those studies conclude that individuals with good moral re...
The effect of job stress and job motivation on employees’ performance through job satisfaction (A study at PT. Jasa Marga (Persero) Tbk. Surabaya - Gempol branch)
Job stress and motivation has a critical role to enhance female employee performance. The research attempts to analyze the direct effect of job stress and motivation on employee performance, and indirect effect of job st...
Is the effect of a political event more pronounced for governmentcontrolled firms?
This study investigates market reaction to a political event, which is the presidential election of Republic of Indonesia in 2014 by studying 387 publicly-traded firms in the Indonesia Stock Exchange. It employs event st...
Strategic environment and bank performance; (Empirical study of bank listed in Indonesian stock exchange period 2011-2015)
This study aimed to explain the interaction between macroeconomic and the internal environment with the performance of banks in Indonesia. The analysed data obtained from 10 banks for 5-year observation period by using d...
Sticky cost behavior of bank’s executive compensation in four South East Asian countries
Some studies indicate that selling, general, and administrative (SG&A) cost have sticky characteristics. A cost is sticky if it increases as the activity increases, but it does not decrease as the activity decreases, in...