decentralization, fiscal capability and public spending efficiency
Abstract
Assigning autonomy to regency governments in Indonesia has failed to increase regency’s economies.
While it increases regency government role in planning and initiating policies, its impact on
economic development has been insignificant. This stems from the lack of institution’s capacity in
organizing the bulk funds transfer from the central government which leads to inefficiency in resource
allocation. This paper maps these regencies based on their fiscal dependency. This paper
also applies Data Envelopment Analysis to identify the efficient and non efficient regencies in such
a way that the non efficient regencies might use the efficient ones as the benchmark to increase their
efficiency.
Keywords: Autonomy, regency government, efficiency
JEL classification numbers: H21, H53, H71, H72
Keywords
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163209
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