IMPACT OF FISCAL DECENTRALIZATION FISCAL ON HUMAN DEVELOPMENT INDEX IN INDONESIA
Abstract
The purpose of this study was to analyze regional typology based on fiscal decentralization and HDI and analyze the impact of fiscal decentralization on HDI in Indonesia. The data used are data of IPM, PAD, DBH SDA, PDRB per capita, poverty level, gini coefficient, and unemployment rate in Indonesia period 2000-2014 obtained from BPS Provinsi DI Yogyakarta. The analysis tool use scatter graph and GLS FEM method. The results of the scatter graph analysis showed that provinces have high HDI and high PAD ratios are DKI Jakarta, Yogyakarta, North Sumatera, West Sumatera, Bali, Central Java and West Java provinces. High HDI and high DBH SDA ratios are Riau, East Kalimantan, South Sumatera and Jambi provinces. The regression result of this research show impact of fiscal decentralization on HDI in terms of PAD ratio and DBH SDA ratio showed a positive and significant influence. The regression result is relatively robust because it tends not much different after added variable DAUratio.
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