| The purpose of this research is to analyze the impact of fiscal decentralization on human development in Indonesia. The research uses probit model methodology and 33 cross section data to estimate the impact of decentralization on human development. As a proxy of fiscal decentralization, this research uses dana perimbangan and different type of dana perimbangan for 2007 and 2010. And for the dependent variable, the author used indeks pembangunan manusia in 2010. The estimation results show that the impact of decentralization on human development is postive. Dana perimbangan that gives the biggest effect is Dana Alokasi Khusus. The estimation results also show that dana perimbangan in 2007 has a bigger impact on human development in 2010 than dana perimbangan in 2010. In general, fiscal decentralization in form of dana perimbangan has a positive impact on probability of a province to achive the human development above average. |