The Impact of Government Budget shifts to Regional Disparities in Indonesia: Before and After Decentralisation
Adiwan Aritenang ()
MPRA Paper from University Library of Munich, Germany
Since its independence, Indonesia has experience a rapid and uneven economic growth. The financial crisis in 1998 has led Indonesia to decentralisation with a new political and government budget order in 2001. Researches found that the local government’s main expenditure are on routine spending, such as wage and asset maintenance, not on the development spending. Using macroeconomic data from 1993 to 2005, this paper aims to overview the inequality in Indonesia regions before and after the decentralisation. The paper deploy a set of data on inter government fiscal transfer, expenditure rate, and the level of revenue as a proxy variables to understand the effect to inequality. In this paper we will overview the level of disparities by using various methods and also the shifts of regional inequality over time. It is suggested that inequality level is still severe and convergence rate has decrease throughout the decentralisation era. Impacts from inequality can be detected although weak and fluctuated over time.
Keywords: Indonesia; Decentralisation; Government Budget; Disparities; Local Revenue (search for similar items in EconPapers)
JEL-codes: C01 C23 H71 H72 R51 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/25243/1/MPRA_paper_25243.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:25243
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().