Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103953
Authors: 
Kis-Katos, Krisztina
Suharnoko Sjahrir, Bambang
Year of Publication: 
2014
Series/Report no.: 
Discussion Paper Series, University of Freiburg, Department of International Economic Policy 25
Abstract: 
We investigate the effects of the Indonesian decentralization and democratization process on budget allocation at the sub-national level. Based on panel data for 271 Indonesian districts for the years of 1994 to 2009, we address the determinants of local investment expenditures in public infrastructure in the sectors of education, health, and physical infrastructure. We find that after the dramatic expenditure decentralization of 2001, districts with relatively lower levels of public infrastructure started to invest more in these sectors. In contrast to the marked budgeting changes following the fiscal and administrative decentralization, we find no consistent effects of the democratization process on local public investments. Our results reflect initial improvements in local targeting but show no evidence of increasing electoral accountability.
Subjects: 
Decentralization
democratic elections
budget allocation
Indonesia
JEL: 
H72
H75
Document Type: 
Working Paper

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