Abstract

This study aimed to examine the effect of fiscal decentralization on local economic growth as well as view the ability of balance funds and private investment as a moderating variable, in strengthening the positive impact of fiscal decentralization on local economic growth in the province of Bali. The study was conducted in nine districts / municipalities in the province of Bali with a total sample of 45 samples. The data analysis techniques used in this study is partial least square (PLS). Hypothesis test results showed that only fiscal decentralization has a positive and significant impact on regional economic growth. Meanwhile, two moderating variables not proven to strengthen the positive effects of fiscal decentralization on economic growth in the region.

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