Dampak Implementasi Desentralisasi Fiskal terhadap Pertumbuhan Ekonomi dan Stabilitas Harga di Provinsi di Indonesia

Fiscal decentralization and implementation of local autonomy enhance authority of local governments to increase their income and to conduct allocative function in setting priority of local development. Fiscal decentralization and implementation of local autonomy are expected to improve equality of local developments, in accordance with the motivation of local governments to develop their region based on their specific potentiality.This study is intended to examine the influence of fiscal decentralization on economic growth, and inflation in the provinces in Indonesia. Data analysis is conducted using multiple regression.The results of this study indicate that, fiscal decentralization has a positive relationship but statistically were not significant effect on economic growth and inflation. Second, employment significant positive effect on economic growth