The Effects of Decentralization on Economic Growth in the Political Periphery in Indonesia
(2018) NEKN01 20181Department of Economics
- Abstract
- Does decentralization promote economic growth? This paper attempts to shed light upon this rather debatable topic by measuring the real effects of decentralization on economic growth in the political periphery in Indonesia. Indonesia issued decentralization laws that were implemented in 2001, which affected all districts except those in the special province of DKI Jakarta. Therefore, the effects of decentralization on economic growth of districts in (control group) and outside (treatment group) of DKI Jakarta pre- and post-decentralization can be compared using difference-in-difference estimation method. This statistical method used is appropriate to mitigate selection bias and other external factor effects, thus capturing the real effects... (More)
- Does decentralization promote economic growth? This paper attempts to shed light upon this rather debatable topic by measuring the real effects of decentralization on economic growth in the political periphery in Indonesia. Indonesia issued decentralization laws that were implemented in 2001, which affected all districts except those in the special province of DKI Jakarta. Therefore, the effects of decentralization on economic growth of districts in (control group) and outside (treatment group) of DKI Jakarta pre- and post-decentralization can be compared using difference-in-difference estimation method. This statistical method used is appropriate to mitigate selection bias and other external factor effects, thus capturing the real effects of decentralization. The empirical results of this study find evidence that decentralization contributes to overall economic growth in the political periphery. The results, regardless of the presence of oil and gas, are robust to changes in control group specifications. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8945927
- author
- Gunawan, Devita Kristianti LU
- supervisor
- organization
- course
- NEKN01 20181
- year
- 2018
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- decentralization, economic growth, Indonesia, political periphery, difference-in- difference
- language
- English
- id
- 8945927
- date added to LUP
- 2018-07-03 14:20:46
- date last changed
- 2018-07-03 14:20:46
@misc{8945927, abstract = {{Does decentralization promote economic growth? This paper attempts to shed light upon this rather debatable topic by measuring the real effects of decentralization on economic growth in the political periphery in Indonesia. Indonesia issued decentralization laws that were implemented in 2001, which affected all districts except those in the special province of DKI Jakarta. Therefore, the effects of decentralization on economic growth of districts in (control group) and outside (treatment group) of DKI Jakarta pre- and post-decentralization can be compared using difference-in-difference estimation method. This statistical method used is appropriate to mitigate selection bias and other external factor effects, thus capturing the real effects of decentralization. The empirical results of this study find evidence that decentralization contributes to overall economic growth in the political periphery. The results, regardless of the presence of oil and gas, are robust to changes in control group specifications.}}, author = {{Gunawan, Devita Kristianti}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Effects of Decentralization on Economic Growth in the Political Periphery in Indonesia}}, year = {{2018}}, }