Pengaruh Desentralisasi Fiskal Terhadap Inflasi di Propinsi Nusa Tenggara Barat
Keywords:Fiscal decentralization, Inflasi, Fixed Effect Model
This research is designed to find the effect of fiscal decentralization on inflation in West Nusa Tenggara (NTB) province during the period of 2010- 2014 for ten districts in NTB in forms of panel data.. Fiscal Decentralization is proxied from the ratio of specific allocation fund (DAK) to the regional expenditure budget (APBD), ratio of general allocation fund (DAU) to APBD, ratio of revenue sharing fund (DBH) to APBD , and regional retribution. Meanwhile, inflation is proxied by the Gross Domestic Regional Product. Tool’s analysis used in this research is multivariable linear regression by applying Fixed Effect Model (FEM) method. The results show that the ratio of DAK to APBD has a significant negative effect on inflation in the region with 95 percent significance level. If the DAK increased one unit then the inflation will be reduced by 0.1290144 unit. Meanwhile, the ratio of DAU to APBD has positive influence on inflation with coefficient value of 0.5825204. moreover, the ratio of DBH to APBD has positive effect on inflation with the value of the coefficient is 0,4592334. On the other hand, the regional retribution has negative and significant influence on inflation with coefficient 0.0003764.