The Effect of Regional Government Expenditure on Economic Growth: Case Study of Sumatera Island - Dynamic Panel Approach

Agus Tri Basuki, Yunastiti Purwaningsih, A. M. Soesilo, Mulyanto

2018

Abstract

The purpose of this study is to see the effect of fiscal variables that affect the economic growth of several provinces in Sumatra. The model used in seeing the effect of government spending on GRDP growth is the dynamic panel model. Based on data from 7 provinces of 10 provinces on the island of Sumatra and using data from 2008 to 2017, in the short term BPK's opinion on regional financial statements has a negative relationship, meaning that if opinion is good or there are no findings of poor performance on regional financial statements it will reduce economic growth. In the long run, few case findings in financial reporting will encourage economic growth. Local government spending on education both in the long term and in the short term affects economic growth. While spending on health, maritime and agriculture in the short term has not been able to encourage economic growth. Whereas in the long run, health and marine expenditures encourage economic growth. While general allocation funds in the short term affect economic growth, but in the long run it does not affect economic growth.

Paper Citation

in Harvard Style

Basuki A., Purwaningsih Y., Soesilo A. and Mulyanto. (2018). The Effect of Regional Government Expenditure on Economic Growth: Case Study of Sumatera Island - Dynamic Panel Approach.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 650-657. DOI: 10.5220/0009511106500657

in Bibtex Style

@conference{unicees18,
author={Agus Tri Basuki and Yunastiti Purwaningsih and A. M. Soesilo and Mulyanto},
title={The Effect of Regional Government Expenditure on Economic Growth: Case Study of Sumatera Island - Dynamic Panel Approach},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={650-657},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009511106500657},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - The Effect of Regional Government Expenditure on Economic Growth: Case Study of Sumatera Island - Dynamic Panel Approach
SN - 978-989-758-432-9
AU - Basuki A.
AU - Purwaningsih Y.
AU - Soesilo A.
AU - Mulyanto.
PY - 2018
SP - 650
EP - 657
DO - 10.5220/0009511106500657