DAMPAK DESENTRALISASI FISKAL TERHADAP KETIMPANGAN PENDAPATAN ANTAR WILAYAH (STUDI KASUS KABUPATEN/KOTA PROPINSI SUMATERA UTARA)

Abstract

Fiscal decentralization gives more advantages for regions to manage their own fiscal capacities. Regions governments have opportunity to increase economic efficiency because governments have informational advantages corcerning resource allocation. The governments are in better position to provide the kind of public goods and services that closely meets the local needs. This research aims to analyze the impact of the implementation of fiscal decentralization on regional economic growth and regional disparities in 19 regencies/cities in North Sumatera Province for a five-year implementation period, since 2004-2008. Variables studied its influence on regional economic growth is the degree of fiscal decentralization, tax ratio district, the total work force, and aglomeration level of 19 regencies/cities in North Sumatera Province. While for regions disparity the variables are examined degree of fiscal decentralization, tax ratio district, the total work force, and aglomeration level and economic growth rate of 19 regencies/cities in North Sumatera Province, using the simultaneous recursive model. The analysis concluded that fiscal decentralization is positive effect and statistically significant amount of 365.1798 to regional economic growth in 19 regencies/cities in North Sumatera Province. Meanwhile for regions disparity, fiscal decentralization is negative effect and statistically significant amount of 284.3040 to disparities between regency/cities in North Sumatera Province. During five years of implementation of the fiscal decentralization in North Sumatera Province could be proved that the empirical, fiscal decentralization make the economic growth of 19 regencies/cities in North Sumatera Province, increased every year, but the graphics improved of economic growth every year thus increasing regional disparities occur between regencies/cities in North Sumatera Province.