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Abstract

In the Indonesia democracy, the multiparty system is used as one of the canal to aggregate the public aspirations. This mechanism is supported by Law No. 25/1999 about fiscal decentralization and a series of related regulations. It is also supported by direct election for regional head (Pilkada). As such, the winning political parties may influence the local government budget allocation which finally transform into the economic growth. This study estimates the influence of party politic concentration on the local economic growth. The data used is the local government election of 2004 and 2009 from 55 regions (cities). The concentration of political power in regional legislatives is measured by using Herfindahl Hirschman Index (HHI). The results of analysis confirm that the more concentrated political power in the regional legislative results lower economic growth.

Bahasa Abstract

Dalam dinamika demokrasi Indonesia, mekanisme multipartai merupakan salah satu cara untuk mengatur aspirasi. Mekanisme ini didukung UU No. 25 Tahun 1999 mengenai desentralisasi fiskal dan dinamika perubahannya. Pemilihan Kepala Daerah (Pilkada) langsung pun turut mendukung mekanisme demokrasi di daerah. Partai politik pemenang pilkada akan memengaruhi pola alokasi anggaran daerah yang akhirnya bisa berdampak pada efektivitas pengeluaran pemerintah. Studi ini mengestimasi seberapa besar pengaruh konsentrasi partai di daerah terhadap pertumbuhan ekonomi di daerah. Analisis menggunakan data 55 kabupaten/kota tahun 2004 dan 2009. Konsentrasi partai politik di dalam parlemen di daerah diukur dari proporsi anggota dewan dari masing-masing partai politik menggunakan Herfindahl Hirschman Index (HHI). Data tahun 2004 dan 2009 mengonfirmasi bahwa semakin terkonsentrasinya anggota dewan pada satu partai politik tertentu, maka semakin rendah pertumbuhan ekonomi daerah tersebut.

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