Desentralisasi fiskal dan probabilitas terjadinya korupsi: Sebuah bukti empiris dari Indonesia

  • Evi Maria Universitas Kristen Satya Wacana
  • Abdul Halim Universitas Gadjah Mada
  • Eko Suwardi Universitas Gadjah Mada
  • Setiyono Miharjo Universitas Gadjah Mada
Keywords: fiscal decentralization, corruption, opportunity, ,internal control system, local governments

Abstract

This research aims to examine the effect of fiscal decentralization on the probability of corruption in Indonesian local governments. The study uses the amount of the fiscal balance funds from the central government to the provincial governments as the proxy of the fiscal decentralization variable. Meanwhile, the measure of corruption is province-level corruption cases that have binding legal force from the Supreme Court in 2010-2013. By using 132 province-level observations for the period of 2010-2013, the paper shows that fiscal decentralization has a positive impact on the probability of corruption. Further, the results imply that the greater the fiscal balance funds, the more likely are local governments to engage in corruption. The results are robust when several control variables (personnel expenditure, population size, and area type) are added. Specifically, only fiscal decentralization affects the probability of corruption in local governments, while employee expenditure, population size, and area type do not affect corruption. This study suggests that fiscal decentralization leaves a greater opportunity for local governments to commit corruption. Thus, to minimize the probability of corruption, an effective internal control system needs to be implemented to monitor the ongoing fiscal decentralization in local governments.

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Published
2019-04-30
How to Cite
Maria, E., Halim, A., Suwardi, E., & Miharjo, S. (2019). Desentralisasi fiskal dan probabilitas terjadinya korupsi: Sebuah bukti empiris dari Indonesia. Jurnal Ekonomi Dan Bisnis, 22(1), 1-22. https://doi.org/https://doi.org/10.24914/jeb.v22i1.2036
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Articles