Analysis of the Effect of Regional Financial Performance on Regional Economic Growth in Indonesia Year 2012-2016

Mieke Nadia Rossa, Sulistyo Sulistyo, Eris Dianawati

2018

Abstract

Economic growth of a region can be seen from the financial capacity of the region in financing its own activities, the better the financial capacity of the region will further encourage regional economic growth. The purpose of this study is to test and obtain empirical evidence of the influence of financial performance on economic growth in cities and districts in East Java Region and to know how the difference between economic growth and financial performance between the city and district of East Java Region 2012-2016. The sample in this research are 6 districts, and 3 cities located in east java area with research object that is financial performance in the form of independence ratio, dependency ratio, effectiveness ratio, and economic growth. Determination of the sample is done by using purposive sampling method and the method used in this research is done by multiple linear regression analysis and T-test. Based on the results of this study, financial performance in the form of independence ratio and effectiveness ratio showed a significant positive impact on economic growth, while the dependency ratio has no significant effect on economic growth. Further economic growth between city and district has significant difference, financial performance in the form of independence and dependency ratios have significant differences between city and district, while the financial performance of the ratio of effectiveness has no significant difference between the city and district in East Java Region in 2012- 2016.

Paper Citation

in Harvard Style

Rossa M., Sulistyo S. and Dianawati E. (2018). Analysis of the Effect of Regional Financial Performance on Regional Economic Growth in Indonesia Year 2012-2016.In Proceedings of the Annual Conference on Social Sciences and Humanities - Volume 1: ANCOSH, ISBN 978-989-758-343-8, pages 376-381. DOI: 10.5220/0007421003760381

in Bibtex Style

@conference{ancosh18,
author={Mieke Nadia Rossa and Sulistyo Sulistyo and Eris Dianawati},
title={Analysis of the Effect of Regional Financial Performance on Regional Economic Growth in Indonesia Year 2012-2016},
booktitle={Proceedings of the Annual Conference on Social Sciences and Humanities - Volume 1: ANCOSH,},
year={2018},
pages={376-381},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007421003760381},
isbn={978-989-758-343-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Annual Conference on Social Sciences and Humanities - Volume 1: ANCOSH,
TI - Analysis of the Effect of Regional Financial Performance on Regional Economic Growth in Indonesia Year 2012-2016
SN - 978-989-758-343-8
AU - Rossa M.
AU - Sulistyo S.
AU - Dianawati E.
PY - 2018
SP - 376
EP - 381
DO - 10.5220/0007421003760381