How do socioeconomic indicators and fiscal decentralization affect stunting? Evidence from Indonesia

Abstract

Purpose Stunting has emerged as a prominent concern on a global scale. Over the past seven years, the average prevalence has consistently exceeded the World Health Organization standards. This study aims to investigate the roots and model of stunting. Design/methodology/approach The samples were collected from 406 regencies (counties) and municipalities across 34 provinces in Indonesia from 2017 to 2022 and used the dynamic panel data analysis. Findings The findings showed that the food security index, poverty line, women’s years of schooling, the specific allocation of funds and hopeful family program negatively influenced stunting. Otherwise, village funds and fiscal decentralisation positively affect stunting. The results also confirmed that stunting had a dynamic impact. In addition, the effect of income per capita, the poverty severity index and government funds for education and health on stunting rates were inconclusive. Practical implications The policy implication of the study suggests that the government must consider the budgetary concerns of each region and focus on the regions that exhibit different needs. Originality/value This paper will contribute to the literature about the modelling of determinants of Stunting in Indonesia.