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The Relation of Fiscal Decentralization, Regional Finance and Social Justice for the Local Development of Indonesia

Applied Economics and Finance

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Title The Relation of Fiscal Decentralization, Regional Finance and Social Justice for the Local Development of Indonesia
 
Creator Simanjuntak, Timbul Hamonangan
Mukhlis, Imam
 
Description This study aims to analyze the relationship between fiscal decentralization, fiscal capacity, financial independence and financial expenditure areas in achieving social justice. In this case, the East Java Province Indonesia is supported by the existence of local government district / municipality became the main object of study during 2010 -2014. The needed data are such as; financial balance data, regional revenue, the amount of local spending and social justice data on people's lives. Data analysis method used is Partial Least Square (PLS). The results provide the conclusion that the implementation of the fiscal decentralization policy gives positive and significant impact on local fiscal capacity. Fiscal capacity gives positive and significant impact on the local financial independence. Local financial independence gives positive and significant impact on the structure of the shopping area. The structure of local government spending has a significant effect on the achievement of social justice areas. In this case, the fiscal capacity and financial independence have no direct impact significantly on the achievement of social justice in the various districts / cities in East Java. In addition, this study also provides important conclusion that there is a significant indirect effect of fiscal decentralization on social justice through local fiscal capacity, local financial independence and the structure of local government spending.
 
Publisher Redfame Publishing
 
Contributor —
 
Date 2016-10-06
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://redfame.com/journal/index.php/aef/article/view/1911
10.11114/aef.v4i1.1911
 
Source Applied Economics and Finance; Vol 4, No 1 (2017); 9-17
2332-7308
2332-7294
 
Language eng
 
Relation http://redfame.com/journal/index.php/aef/article/view/1911/2081