Overview

Original Research

ANALYSIS OF FISCAL DECENTRALIZATION, INCOME INEQUALITY AND POVERTY RATE IN INDONESIA

ANDI MUHAMMAD IQBAL WALINONO 1, ARIFUDDIN 2, MUSRAN MUNIZU 3, MURSALIM NOHONG 4, and ANDI AMYTIA RESTY DWIYANTI 5.

Vol 17, No 09 ( 2022 )   |  DOI: 10.5281/zenodo.7053146   |   Author Affiliation: Universitas Hanasuddin.   |   Licensing: CC 4.0   |   Pg no: 39-51   |   To cite: ANDI MUHAMMAD IQBAL WALINONO, et al., (2022). ANALYSIS OF FISCAL DECENTRALIZATION, INCOME INEQUALITY AND POVERTY RATE IN INDONESIA. 17(09), 39–51. https://doi.org/10.5281/zenodo.7053146   |   Published on: 01-09-2022

Abstract

This study aims to determine and analyze the effect of fiscal decentralization (balancing funds, local revenue, and infrastructure budget) on poverty levels through investment, economic growth, and income inequality. This study uses an explanatory design. The type of data used is panel data which is a combination of data from 34 provinces in Indonesia from 2015 to 2019. The analytical model used in this study is the Structural Equation Model (SEM) which is operated through the Analysis of Moment Structure (AMOS) program.

Keywords

Poverty rate, income inequality, economic growth, investment, balancing funds, local revenue, and infrastructure budget.