Province Government Spending and Forest Management in Indonesia

Riatu Qibthiyyah

MPRA Paper from University Library of Munich, Germany

Abstract: In the context of Decentralization in Indonesia, not much of assessment is given to the provincial level. Despite limited functions of provincial government, provincial governments have relatively more tax autonomy, thus making it possible to conduct and coordinate program priorities in the region through its government spending. However, democratic process starting in 2004 is believed could make government put less priority on longer-term objective such environmental protection, in this case referring to protection of forest. Based on provincial panel data from period of 2001-2010, we found higher spending on agriculture and forestry of lower level government may associate with a decrease in forest area after year 2004, especially on province level of government.

Keywords: forestry; province and local government spending; intergovernmental transfers; decentralization (search for similar items in EconPapers)
JEL-codes: H7 Q23 (search for similar items in EconPapers)
Date: 2013-11-15
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