THE IMPACT OF FISCAL DECENTRALIZATION TO INTERREGIONAL ECONOMICS GROWTH AND INCOME DISTRIBUTION IN INDONESIA IN 2007

Azwardi, Azwardi and Anna, Yulianita and Abukosim, Abukosim (2010) THE IMPACT OF FISCAL DECENTRALIZATION TO INTERREGIONAL ECONOMICS GROWTH AND INCOME DISTRIBUTION IN INDONESIA IN 2007. Seminar Internasional (IRSA) Surabaya, Proceeding.

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        Abstract

        This research is aimed to define the Impact of Central Government Expenditure in APBN and Regional Government Expenditure in APBD to Interregional Economics Growth and Income Distribution in Indonesia. The method used in the research is “Output Multiplier” and “Income Multiplier” based on Interregional Social Accounting Matrix 2007 which is developed by using Non-survey Method. Based on the result of research, it is defined that the value of Java total multiplier is influenced higher than outer Java (96.043 > 35.478; 48.525 > 10.683). All value of Interregional Multiplier outer Java-Java is higher than Java-outer Java (0.00053 > 0.00001; 0.000724 > 0.00132; 0.00025 > 0.00014). The value of Java Intraregional multiplier is higher than outer Java (0.08625 > 0.02054; 82.73716 > 15.22092; 0.05040 > 0.01405; 48.36464 > 10.41725). The Routine Expenditure of Central Government and Regional Government is influenced making Income Multiplier for households higher than Development Expenditure (0.10062 > 0.0020; 0.1009 > 0.0020; 0.1024 > 0.0046; 0.1020 > 0.0046). The value of Interregional income multiplier outer Java-Java is higher than Java-outer Java for both Governments and Expenditures (0.0110 > 0.00024; 0.6094 > 0.0008; 0.0082 > 0.0003; 0.6094 > 0.0008). Based on the number of Intraregional Income Multiplier, so outer Java household got higher impact compared by Java, except the development expenditure of central government (0.10135 > 0.10038; 0.00181 > 0.00125; 0.1011 > 0.1005; 0.0018 < 0.00125). The Output Multiplier Value of both Micro region in 2007 has relatively same types, in which the development expenditure is causing the impact higher than the routine expenditure, except in outer Java in which the development expenditure is causing the impact to output lower than the routine expenditure (33.270 > 9.994; 33.2703 > 6.7842; 0.2924 > 0.1161; 0.2924 < 12.0496). The development expenditure and the routine expenditure in Intraregional Java make output multiplier higher than Intraregional outer Java (9.9706 > 0.0580; 33.1956 > 0.1462; 6.0225 > 6.0248; 33.1956 > 0.1462). In both micro regions, the highest output multiplier impact accepted by manufacture sector followed by utilities, services, agriculture, and mining sectors. Key Words: The Impact of Central Government and Regional Expenditure, Interregional Social Accounting Matrix (IRSAM), income multiplier, output multiplier.

        Item Type: Book
        Subjects: H Social Sciences > HB Economic Theory
        Divisions: Faculty of Economics > Department of Economics and Development Studies
        Depositing User: Dr Azwardi, M.Si
        Date Deposited: 22 Apr 2014 18:38
        Last Modified: 22 Apr 2014 18:38
        URI: http://eprints.unsri.ac.id/id/eprint/4177

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