THE IMPACTS OF FISCAL DECENTRALIZATION ON ECONOMIC GROWTH AND SOCIAL WELFARE IN MALUKU PROVINCE

The regional autonomy that taken place by government gives an unhampered chance to the autonomous region increasing the society welfare. The regional autonomy carrying out the principle of decentralization, deconcentration, and the duty of helping implicated on the equitable and balanced development growth. It was hoped this regional autonomy will give positive impact of society welfare on the region through fiscal decentralization. This study be aimed to know and to analyze the influence of fiscal decentralization degree and the special allocation fund to the welfare of the society both as directly or by the economic growth, and the influence of the economic growth to society welfare of regency/munisipality in Maluku Province. The using of the data model was panel data as combining of time series from 2010 to 2016 and the cross section data from eleven regencies/municipalities and using by regression analysis of panel data helped by the Eviews 9 program. The research yield shown that directly the fiscal decentralization degree and the special allocation fund positively influenced and significant to society welfare and indirectly the effect of fiscal decentralization degree and the special allocation fund can be mediated by the economic growth, and was had a positive and significant influenced to the community welfare. Keywords: degree of fiscal decentralization, special allocation funds, economic growth, community welfare