The Effect of Local Revenue and Matching Grant on Capital Expenditures and Implications on Economic Growth in Indonesia
Journal Title: International Journal of Business and Management Invention - Year 2017, Vol 6, Issue 6
Abstract
This study aim is to test and prove empirically the effect of local revenue (PAD) and Matching Grant (DP) on Capital Expenditures (BM) and their Implications on Economic Growth (PE). The study population is 34 provincial governments in Indonesia. The samples are 33 Provinces with 165 observations. The data used is GDP at constant prices to see economic growth, Local Revenue, Matching Grant and Expenditure of Local Government from 2011 to 2015. The data is collected from Financial Audit Agency (BPK) and Central Statistic Bureau (BPS) of Indonesia Republic. The data is tested by Path Analysis. The analysis result shows that Local Revenue and Matching Grant have positive and significant effect on Capital Expenditure. Furthermore, Local Revenue and Matching Grant have positive and significant effect on Economic Growth, while Capital Expenditure has negative and insignificant effect on Economic Growth.
Authors and Affiliations
Abdul Pattawe1*,, Djayani Nurdin1 ,, Nurhayati Haris,, Mohammad Iqbal Bakri
Keywords
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