Fiscal decentralization and its impact on industrial development in Jambi Province | Zendy

Marzul Hidayat | Zendy; Faradila Herlin | Zendy

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Fiscal decentralization and its impact on industrial development in Jambi Province

Author(s) -

Marzul Hidayat,

Faradila Herlin

Publication year - 2019

Publication title -

jurnal perspektif pembiayaan dan pembangunan daerah

Language(s) - English

Resource type - Journals

eISSN - 2355-8520

pISSN - 2338-4603

DOI - 10.22437/ppd.v7i3.8493

Subject(s) - decentralization , panel data , revenue , investment (military) , capital expenditure , order (exchange) , degree (music) , economics , regression analysis , fiscal system , business , economic system , finance , econometrics , political science , market economy , politics , physics , machine learning , acoustics , computer science , law

This study aims to analyze: 1) factors influencing the degree of fiscal decentralization in Jambi Province; 2) the influence of the degree of fiscal decentralization on the industrial sector in Jambi Province. The analysis model is the panel data regression. The results showed that, first, the economic level, the amount of regional spending, and the investment level significantly influence the degree of fiscal decentralization in Jambi Province. Second, there is a significant impact of the degree of fiscal decentralization on the development of the industrial sector in Jambi Province. This study recommends increasing local own-source revenue in order to improve the degree of fiscal decentralization. Furthermore, the allocation of regional expenditure must be directed towards direct expenditure, especially capital expenditure, which is related to industrial development in Jambi Province.

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