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June 27, 2026Humanities and Social Sciences CommunicationsOpen Access

A composite municipal economic policy index and social development comparisons in the Global South: Evidence from Indonesia, 2010–2023

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Authors

MAMeisy Monica AdelineFPFadillah PutraISI Gede Eko Putra Sri Sentanu

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Overview

Randomized trial evaluates economic policy performance in Indonesia, indicating gaps in social inclusion despite growth.

Key Points

  • This study aims to develop and validate a Municipal Economic Development Policy Performance Index (MEDPPI) to evaluate local governance effectiveness in Indonesia.
  • Panel data analysis from 34 provinces and 514 municipalities in Indonesia from 2010 to 2023.
  • Introduction of MEDPPI integrating Location Quotient (LQ) and Dynamic LQ measures for a more accurate evaluation.
  • Examination of the links between MEDPPI and various social indicators including human development and inequality.
  • Fewer than half of the municipalities demonstrated sustained economic progress.
  • Significant stagnation in decentralized governance outcomes was observed, validating MEDPPI's utility for identifying policy failures.
  • Relationships between economic indicators and social outcomes were found to be fragmented and context-dependent.

Cite This Study

Adeline et al. (2026) studied this question.

synapsesocial.com/papers/6a3f6972aea7db3c195404e6https://doi.org/10.1057/s41599-026-07791-y
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Municipal Economic Policy Performance and Social Development in the Global South: Evidence From Indonesia2025
  2. 2Local Government Financial Performance and Decentralization in Indonesia2025 · 4 citations
  3. 3Governance capacity and subnational fiscal performance under decentralization: evidence from Indonesia2026
  4. 4Balancing Regional Growth, Equity, and Spatial: The Dilemma of Decentralization in Indonesia’s Development2025
  5. 5Economic Growth in Indonesia: The Influence of Fiscal Decentralization, Investment, Labor, and Human Development Index2025