• Putri Meliza Sari Universitas PGRI Sumatera Barat
  • Hefrizal Handra Universitas Andalas
  • Efa Yonnedi Universitas Andalas



economic growth, decentralization, foreign investment, tax revenue


This research aims to examine the effect of decentralization, tax revenues as a percentage of GDP, and foreign investment on economic growth using multiple linear regression analysis. The introduction provides a contextual understanding of the importance of understanding the factors that influence economic growth amidst policy changes from pre-decentralization to post-decentralization. Time series data for 49 years (1977-2021) was used for analysis. The independent variables decentralization, tax revenue as a percentage of GDP, and foreign investment were subjected to multiple linear regression on the dependent variable, namely economic growth. Statistical analysis includes evaluation of coefficients, p values, F statistics, and R-squared. The findings show that decentralization and foreign investment have a significant impact on economic growth. However, tax revenues as a percentage of GDP do not show a significant effect on economic growth. This study underscores the important role of decentralization policies and foreign investment in shaping economic growth. This emphasizes the need to formulate economic policy strategies that take these factors into account. However, further research is needed on tax revenues as a percentage of GDP within the scope of this analysis.


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Author Biographies

Putri Meliza Sari, Universitas PGRI Sumatera Barat

Faculty of Economics and Business, Universitas PGRI Sumatera Barat, Indonesia

Hefrizal Handra, Universitas Andalas

Faculty of Economics and Business, Universitas Andalas, Indonesia

Efa Yonnedi, Universitas Andalas

Faculty of Economics and Business, Universitas Andalas, Indonesia


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How to Cite

Meliza Sari, P., Handra, H., & Yonnedi, E. (2023). DECENTRALIZATION’S IMPACT ON ECONOMIC GROWTH: A COMPARATIVE ANALYSIS. Economics, Finance and Management Review, (4), 4–19.



Chapter 1. Current trends in economic development