Rethinking of Local Autonomy and Fiscal Decentralization Policy: Can It Improve The Quality of Human Capital? A Case in Eastern Region of Indonesia
DOI:
https://doi.org/10.21776/ub.jiae.2023.011.02.2Keywords:
fiscal decentralization, human development, local autonomy policy, economics developmentAbstract
Purpose
This study aims to see the effect of regional autonomy and fiscal decentralization in the fields of education, health, and the economy in the development of human resources in Eastern Indonesia.
Design/methodology/approach
This study uses a quantitative approach with panel data regression utilizing data from 16 provinces in Eastern Indonesia from 2010-2019.
Findings
According to the results, the development of human resource quality is influenced by government spending on education, health, and GRDP per capita. However, the study reveals that capital expenditure does not play a significant role in the enhancement of human resource quality.
Research limitations/implications
One shortcoming of this research is its lack of detailed information regarding how capital expenditures, education expenditures, and health expenditures are distributed across various local governments.
Originality/value
This study shows the impact of fiscal decentralization and regional autonomy by comparing the results gap that occurs between the western and eastern regions of Indonesia on human resource development
References
Abbasian, E., & Mohammadi, S. (2012). Investigating the Effect of Government Health Expenditure on HDI in Iran. Journal of Knowledge Management, Economics and Information Technology, 2(5), 126–139.
Arsyad, L. (2004). Ekonomi Pembangunan Edisi Keempat. Yogyakarta: STIE YKPN.
Barro, R. J. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, 106(2), 407–443. https://doi.org/10.2307/2937943
Becker, G. S. (1993). Human Capital: A Theoritical and Empirical Analysis with Special Reference to Education. The University of Chicago Press.
Chandra Jha, P. (2015). Theory of fiscal federalism: an analysis. Journal of Social and Economic Development, 17(2), 241–259. https://doi.org/10.1007/s40847-015-0009-0
Edeme, R. K. (2014). Analyzing the Effects of Sectoral Public Spending On Human Development in Nigeria: Evidence from Panel Data. IOSR Journal of Humanities and Social Science, 19(9), 01–13. https://doi.org/10.9790/0837-19960113
Fadilah, A., Ananda, C. F., & Kaluge, D. (2018). A Panel Approach : How Does Government Expenditure Influence Human Development Index ? Jurnal Ekonomi Dan Studi Pembangunan, 10(2), 130–139.
Fahmi, A., & Dalimunthe, K. A. (2018). Pengaruh Good Governance, Belanja Fungsi Pendidikan Dan Kesehatan, Dan Pdrb Perkapita Terhadap Ipm. Jurnal Manajemen Keuangan Publik, 2(1), 23–34. https://doi.org/10.31092/jmkp.v2i1.285
Fattah, S. (2012). Local Government Expenditure Allocation toward Human Development Index at Jeneponto Regency, South Sulawesi, Indonesia. IOSR Journal of Humanities and Social Science, 5(6), 40–50. https://doi.org/10.9790/0837-0564050
Hanke, P. C. (2006). Fiscal Federalism. Encyclopedia of Law and Economics, 1–8.
Hidayat, S., & Woyanti, N. (2021). Pengaruh Pdrb Per Kapita, Belanja Daerah, Rasio Ketergantungan, Kemiskinan, Dan Teknologi Terhadap Ipm Di Indonesia. Jurnal Ekonomi, Bisnis Dan Akuntansi (JEBA), 23(4), 122–137.
Islam, S. (1995). The human development index and per capita GDP. Applied Economics Letters, 2(5), 166–167. https://doi.org/10.1080/135048595357537
Jhingan, M. L. (2012). Ekonomi Pembangunan dan Perencanaan. Jakarta: Rajawali Pers.
Kementerian Kesehatan. (2020). Rencana Strategis Kementerian Kesehatan Tahun 2020-2024. 8(75), 147–154.
Kementerian PPN. (2021). Hasil Evaluasi Pelaksanaan SPM bidang Kesehatan tahun 2019 -2021. Hasil Evaluasi Pelaksanaan SPM Bidang Kesehatan Tahun 2019 -2021, September.
Kementrian Pendidikan dan Kebudayaan. (2020). Rencana Strategis Kementrian Pendidikan dan Kebudayaan 2020-2024. Kementerian Pendidikan Dan Kebudayaan, 1–129. https://dikti.kemdikbud.go.id/
Khanal, G. K. (2018). Fiscal Decentralization and Human Poverty in Nepal: A Causal Analysis. Journal of Management and Development Studies, 28, 1–15. https://doi.org/10.3126/jmds.v28i0.24955
Khusaini, M. (2018). Keuangan Daerah. Malang: UB Press.
Komariah, D., Yogiantoro, M., & Hukom, A. (2019). Pengaruh Belanja Modal Dan Pertumbuhan Ekonomi Terhadap Indeks Pembangunan Manusia. Jurnal Riset Manajemen Dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 4(S1), 523–532.
Krasniqi, Florentina Xhelili; Topxhiu, R. M. (2016). The Importance of Investment in Human. Journal of Knowledge Management, Economics and Information Technology.
MS, M. Z., & A, S. (2017). The Effect of Government Expenditures in Education and Health against Human Development Index in Jambi Province. The International Journal of Social Sciences and Humanities Invention, 4(8), 3823–3829. https://doi.org/10.18535/ijsshi/v4i8.21
Nuhu, K. M., McDaniel, J. T., Alorbi, G. A., & Ruiz, J. I. (2018). Effect of healthcare spending on the relationship between the human development index and maternal and neonatal mortality. International Health, 10(1), 33–39. https://doi.org/10.1093/inthealth/ihx053
Pahlevi, M. (2017). Impact of Governance and Government Expenditure on Human Development in Indonesia. December.
Pramartha, I. M. A., & Dwirandra, A. A. N. B. (2018). Pengaruh desentralisasi fiskal, modal belanja, dan investasi swasta terhadap indeks pembangunan manusia. E-Jurnal Akuntansi, 22, 2458. https://ojs.unud.ac.id/index.php/Akuntansi/article/view/35555
Prihastuti, A. H. (2018). Pengaruh Alokasi Belanja Modal dan Pertumbuhan Ekonomi Terhadap Indeks Pembangunan Manusia di Kabupaten/Kota Riau. Jurnal Menara Ekonomi, 4(1), 1–8. http://jurnal.umsb.ac.id/index.php/menaraekonomi/article/view/665
Ranis, G., Stewart, F., & Ramirez, A. (2000). Economic growth and human development. World Development, 28(2), 87–109. https://doi.org/10.4324/9781003241676-6
Riviando, A., Agustin, H., & Halmawati, H. (2019). Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum Dan Dana Alokasi Khusus Terhadap Indeks Pembangunan Manusia Dengan Belanja Modal Sebagai Variabel Intervening. Jurnal Eksplorasi Akuntansi, 1(1), 1–17. http://jea.ppj.unp.ac.id/index.php/jea/issue/view/1
Schultz, T. W. (1989). Investing in people: Schooling in low income countries. Economics of Education Review, 8(3), 219–223. https://doi.org/10.1016/0272-7757(82)90001-2
Shah, S. (2016). Determinants of Human Development Index: A Cross-Country Empirical Analysis. Munich Personal RePEc Archive.
Soejoto, A., Subroto, W. T., & Suyanto. (2015). Fiscal decentralization policy in promoting indonesia human development. International Journal of Economics and Financial Issues, 5(3), 763–771.
Tjodi, A. M., Rotinsulu, T. O., & Kawung, G. M. . (2018). Pengaruh Pengeluaran Pemerintah Sektor Pendidikan, Sektor Kesehatan Dan Belanja Modal Terhadap Indeks Pembangunan Manusia Melalui Pertumbuhan Ekonomi (Studi di Provinsi Sulawesi Utara). Jurnal Pembanguan Ekonomi Dan Keuangan Daerah, 19(4). https://ejournal.unsrat.ac.id/index.php/jpekd/article/view/32762
Todaro, M. P. ., & Smith, S. C. (2011). Pembangunan Ekonomi. Jakarta: Erlangga.
UNDP. (2004). Decentralised Governance for Development: A Combined Practice Note on Decentralisation, Local Governance and Urban/Rural Development.
Vegirawati, T. (2012). Pengaruh Alokasi Belanja Langsung Terhadap Kualitas Pembangunan Manusia. Jurnal Ekonomi Dan Informassi Akuntansi (JENIUS), 2(1), 65–74.
Wijayanto, A. (2015). The Analysis of Health and Educational Expenditure as Well as PDRB Per Capita’s Influence on Human Development Index (Study of Cities/Regencies at East Java Province). International Journal of Social and Local Economic Governance, 1(2), 85–95. https://doi.org/10.21776/ub.ijleg.2015.001.02.1
Yuniawan, D., Sukanti Cahyaningsih, D., Sanusi, A., Chandrararin, G., & Roikhah, E. (2016). International Journal of Trade and Global Markets. Inderscience Publisher, 9(3). http://www.inderscience.com/jhome.php?jcode=ijtgm
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Journal of Indonesian Applied Economics
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
