DECENTRALIZATION, FISCAL CAPABILITY AND PUBLIC SPENDING EFFICIENCY

• Main Authors: Abdul Hakim, Jaka Sriyana
• Format: Article
• Language: English
• Published: Universitas Islam Indonesia 2012-01-01
• Series: Economic Journal of Emerging Markets
• Online Access: http://jurnal.uii.ac.id/index.php/JEP/article/view/2380

<div>Assigning autonomy to regency governments in Indonesia has failed to increase regency’s economies.</div><div>While it increases regency government role in planning and initiating policies, its impact on</div><div>economic development has been insignificant. This stems from the lack of institution’s capacity in</div><div>organizing the bulk funds transfer from the central government which leads to inefficiency in resource</div><div>allocation. This paper maps these regencies based on their fiscal dependency. This paper</div><div>also applies Data Envelopment Analysis to identify the efficient and non efficient regencies in such</div><div>a way that the non efficient regencies might use the efficient ones as the benchmark to increase their</div><div>efficiency.</div><div><br /></div><div>Keywords: Autonomy, regency government, efficiency</div><div>JEL classification numbers: H21, H53, H71, H72</div>