ANALISIS DAMPAK DESENTRALISASI FISKAL TERHADAP PERTUMBUHAN EKONOMI DI KABUPATEN/KOTA PROVINSI JAWA TENGAH

Abstract

In the fiscal decentralization era, local governments is provided with authority to increase their income and to conduct allocative function in setting priority of local development. This research is intended to examine the influence offiscal decentralization on economic growth, at regencies/municipalities level in Central Java Province. Research population consist of 29 regencies and 6 municipalities, employing secondary data from Central Bureau of Statistic of Central Java Province and regencies/ municipalities level in Central Java Province within the period of 2001 up to 2005. Data analysis is conducted by using path analysis with SPSS program software. The results of this study indicate that, fiscal decentralization has a positive and significant effect on economic growth at regencies/municipalities level in Central Java Province. Keywords: fiscal decentralization, economic growth.