Dampak Kebijakan Desentralisasi Fiskal, Kinerja Ekonomi terhadap Indikator Pembangunan di Pulau Papua

Abstrak

The implementation of fiscal decentralization is expected to accelerate public services, develop regional potentials,  improve the economy and prosperity. However, this situation does not apply to every province, such as Papua and West Papua Provinces having capital expenditure above average and high economic growth rates, but indicators of regional development are still in concern. This study aims to determine the relationship between fiscal decentralization and economic performance towards indicators of regional development. By using Structural Equation Modeling - Partial Least Square (SEM-PLS) analysis, the results show that there is a positive relationship between fiscal decentralization on economic performance. In addition, there is also a positive relationship between fiscal decentralization and economic performance on development indicators.

Keywords— fiscal decentralization, economic performance, development indicators, PLS-SEM