Proceedings of Bengkulu International Conference on Economics, Management, Business, and Accounting
Vol. 1 (2023): Proceeding Bicemba

Evaluation of Two Decades of Fiscal Decentralization on Economic Capacity and Community Welfare: A Case Study of Bengkulu Province

Dheanggi Wulan Pratama Wanty (Universitas Bengkulu)
Septriani Septriani (Universitas Bengkulu)



Article Info

Publish Date
05 Dec 2023

Abstract

This study examines the impact of fiscal decentralization on local economic capacity and the welfare of the people of Bengkulu over the past two decades. Bengkulu was chosen as a case study because it has the second highest poverty rate in Sumatra Island. The study uses time series data obtained from various secondary sources, such as the human development index, poverty reports, DAU, and provincial economic development reports. This study uses a partial least squares structural equation model (PLS-SEM) using SmartPLS 3 software to analyze the data. This study has three main variables: community welfare (Y), economic capacity (M), and fiscal decentralization (X). The results of this study show that fiscal decentralization has an indirect effect on community welfare but a direct effect through economic capacity.

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Journal Info

Abbrev

bicemba

Publisher

Subject

Economics, Econometrics & Finance

Description

The focus and scope of BICEMBA include Economics Development, Finance and Public Economics, Labor Economics, Blue and Green Economics Digital Economy and Behavioral Economics, E-Government and Governance, Macroeconomics Policy, International Trade, Creative Economics and Tourism, Food Security, ...