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Analysis of the impact of village funds as fiscal decentratlization policy on reducing poverty level of rural communities in Indonesia
Anam, Choirul ; Plaček, Michal (advisor) ; Nemec, Juraj (referee) ; Vaceková, Gabriela (referee)
Not only does decentralization transfer of powers and functions from central government to local governments, but also about how the people can stimulate rural development to gradually improve their welfare. In fact, not all countries that implement decentralization get the same results in terms of their impact on economic growth and poverty alleviation. This research applies an exploratory approach that is enhanced by structured interviews and field research, as well as an empirical approach that is strengthened by stepwise regression. The aim of this research is to see the interconnection between village funds policies and poverty alleviation in Indonesia. The results show that per capita village funds can reduce poverty even though it may differ between provinces. However, proportional of village funds has the opposite impact if they are overly dependent on the central government transfers. In addition, some of the research findings appear to contradict the theory due to the influence of the unique character and culture of Indonesian people. The village funds program in Indonesia has become a unique and challenging issue for researchers. Therefore, further research can be done by concentrating on the other impacts of village funds in Indonesia than poverty which is essential to enrich the...

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