Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia

Figures & data

Figure 1. Fiscal decentralisation in Indonesia; based on decentralisation degree 2014–2018.

Figure 2. Fiscal decentralisation in Indonesia: based on the Regional Independence Ratio 2014–2018.

Table 1. Result of static panel data analysis. Dependent Variable: Growth of Regional Domestic Product (LGRDP)

Independent Variables	FIXED EFFECT
	Model 1	MODEL 2	MODEL 3
LDD	−0.2113*** (0.0000)	−0.1926*** (0.0000)	0.03557* (0.0883)
LGG	0.1146*** (0.0000)	0.1188*** (0.0000)	0.0204 (0.3821)
LORI	0.2272*** (0.0000)	0.2085*** (0.0000)	0.0799*** (0.0002)
LTL	−0.0022 (0.8911)	−0.0097 (0.6417)	0.1952*** (0.0000)
LHD	4.0814*** (0.0000)	4.0829*** (00.0000)	5.4587*** (0.0000)
Constant	5.0536*** (0.0000)	5.0243*** (0.0000)	−0.8870 (0.4491)
The goodness of the Fit Model
R-square	0.9989	0.9987	0.9994
F test	5338.52*** (0.0000)	4633.01*** (0.0000)	8402.74*** (0.0000)
Model Selection Test
Chow Test (Chi-square)	5928.39 (0.0000)	5596.01 (0.0000)	733.01 (0.0000)
Hausman test	106.69 (0.0000)	84.71 (0.0000)	41.34 (0.0000)
NxT	2904	2904	2904

The parenthesis are probabilities, except for the F (Walt) test, BP-LM test,

Hausman test, F test, are p-values. *** p ≤ 1%, ** p ≤ 5% and * p ≤ 1%

Table 2. Result of dynamic panel data analysis. Dependent Variable: Growth of Regional Domestic Product (LGRDP)

	Model 1		Model 2		Model 3
	DGMM (Two-step)	SGM (Two-step)	DGMM (Two-step)	SGM (Two-step)	DGMM (Two-step)	SGM (Two-step)
Constant	4.940*** (2.3525)	4.114** (2.1821)	3.043 (2.464)	1.9063 (2.089)	−7.1994 (4.8108)	12.748*** (2.0193)
Lag LGRDP	0.472*** (0.0536)	0.450*** (0.0316)	0.536*** (0.040)	0.551*** (0.0263)	−0.063*** (0.0199)	0.170*** (0.0377)
LDD	0.064*** (0.0230)	0.088** (0.0463)	0.161*** (0.0614)	0.163*** (0.0616)	−0.0128 (0.01784)	−0.066*** (0.0317)
LGG	0.0008*** (0.0004)	0.001*** (0.0003)	0.0009*** (0.0004)	0.0008** (0.0004)	0.0001 (0.0002)	0.0007*** (0.0001)
LORI	−0.025*** (0.0089)	−0.0458 (0.0309)	−0.094*** (0.0430)	−0.098*** (0.0428)	−0.0022 (0.0031)	0.027*** (0.0089)
LTPL	−0.0004 (0.0004)	−0.0005 (0.0003)	−0.0006 (0.0004)	−0.0007* (0.0004)	−0.001*** (0.0002)	0.0001 (0.0002)
LHD	−0.0409 (0.0400)	−0.0248 (0.0367)	−0.0169 (0.0416)	0.0012 (0.0360)	0.192*** (0.0633)	−0.112*** (0.0203)
Sargent test	16.81057*	21.7645*	16.6838*	19.6911	7.7846	14.9319
AR(1)	−2.894***	−2.960***	−3.125***	−3.17***	−2.104***	−2.163***
AR(2)	1.0886	1.0856	0.85624	0.83903	−1.1805	−0.35825
NxT	2000	2500	1920	2400	76	95

Standard errors are in parentheses; statistical significance: *** p ≤ 1%, ** p ≤ 5%,

and * p ≤ 10%. NxT is the total sample (cross-section multiplied by time series).