Causality on the Growth-Governance-Fiscal Decentralization Nexus: An Analysis of Time Series in Indonesia

SUHARYONO, - and Kumba Digdowiseiso, - and Eko Sugiyanto, . and Zulmasyhur, - (2018) Causality on the Growth-Governance-Fiscal Decentralization Nexus: An Analysis of Time Series in Indonesia. Journal of Applied Economic Sciences, XIII (7 (61)). ISSN 2393 – 5162

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Abstract

This study tries to disentangle whether governance and fiscal decentralization in Indonesia improves economic growth in the period 1984 – 2014. Also, it investigates whether there is a causality in the growth-governance-fiscal decentralization nexus in Indonesia. The results run by OLS (Ordinary Least Square) and VECM (Vector Error Correction Model) provide different intrepretation. However, one could argue that VECM can best describe the relationship between growth and governance as well fiscal decentralization both in short and long run since simple OLS are useful when all variables are stationary at level. Keywords: governance; fiscal decentralization; growth; Indonesia

Item Type: Article
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Buku > Ekonomi
Depositing User: BPSI Unas
Date Deposited: 11 May 2020 04:50
Last Modified: 11 May 2020 04:50
URI: http://repository.unas.ac.id/id/eprint/561

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