ANALISIS DAMPAK PERTUMBUHAN EKONOMI, KESENJANGAN ANTAR DAERAH DAN TENAGA KERJA TERSERAP TERHADAP KESEJAHTERAAN DI KABUPATEN/KOTA PROVINSI JAWA TENGAH DALAM ERA DESENTRALISASI FISKAL

Abstract

In the autonomy and fiscal decentralization era, local governments is provided
with authority to increase their income and to conduct allocative function in setting
priority of local development. This research is intended to examine the influence of
economic growth, inter-regional inequality, employment, on welfare at
regencies/municipalities level in Central Java Province.
Research population consist of 29 regencies and 6 municipalities, employing
secondary data from Central Bureau of Statistic of Central Java Province and
regencies/municipalities level in Central Java Province within the period of 2001 up
to 2005. Data analysis is conducted by using path analysis .
The results of this study indicate that, first, economic growth has a positive
and significant effect on welfare at regencies/municipalities level in Central Java
Province. Second, inter-regional inequality has a negative and significant effect on
welfare at regencies/municipalities level in Central Java Province. Third,
employment rate has a negative and significant effect on welfare at
regencies/municipalities level in Central Java Province.
Key words:, economic growth, inter-regional inequality, employment, welfare