The impact of fiscal decentralization on economic growth and manpower absorption at districts/cities in South Kalimantan Province

The focus of this research is to examine and analyze the impact of fiscal decentralization on economic growth and labor absorption by variable instruments in the form of total investment, average school length, and life expectancy. This study uses panel data from 13 districts/cities in South Kalimantan Province in 2005-2015. Data analysis techniques use the simultaneous data panel Two Stage Least Squared (TSLS) and the results show that the impact of fiscal decentralization together is significant. Individually, all variables have a positive and significant impact on economic growth. Hulu Sungai Tengah Regency shows the highest positive performance, while the impact of economic growth through fiscal decentralization on labor absorption collectively is significant, but absorption individually is only significant in the fiscal decentralization (t-1) variable, with Banjarmasin City recording the highest positive performance.