Causality on the Growth-Governance-Fiscal Decentralization Nexus: An Analysis of Time Series in Indonesia
Causality on the Growth-Governance-Fiscal Decentralization Nexus: An Analysis of Time Series in Indonesia
Author(s): Suharyono Suharyono, Kumba Digdowiseiso, Eko Sugiyanto, Zulmasyhur ZulmasyhurSubject(s): Economy, National Economy, Governance, Fiscal Politics / Budgeting
Published by: Reprograph
Keywords: governance; fiscal decentralization; growth; international business research; non-response bias; response rate enhancement techniques; survey by knocking at door;
Summary/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.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XIII/2018
- Issue No: 61
- Page Range: 1854-1863
- Page Count: 10
- Language: English