A Study on Indonesia Regions Disparity: Post Decentralization

Aritenang, Adiwan F. (2008): A Study on Indonesia Regions Disparity: Post Decentralization.

Abstract

Since its independence, Indonesia has developed fluctuated and uneven. The financial crisis and political changes has lead to decentralization in 1999, which has entitled local governments (province and regency/municipality) to develop its region autonomously. Surprisingly, it was concern that the decentralization will increase the disparities, rather than decrease it. This research uses Indonesia disparities in the province level. Using regression analysis we will overview Indonesian provinces disparities and poverty rate to overview the economic growth after decentralization. Overall, this research aims to shows the economic performance of Indonesia regions and highlight determinant factors that impacts poverty rate. This research lays in the Poverty reduction theory and ideology within a context of globalization sub-theme because it studies on the approach that Indonesia government took to solve disparities and encourages poor regions to advance its development.

• Item Type: MPRA Paper
• Language: English
• Keywords: decentralization; disparity; economic growth
• Subjects: H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H70 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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