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Volume 07 Issue 01 January 2024

The Effect of Economic Growth, Local Original Revenue, General Allocation Fund, Special Allocation Fund, and Profit Sharing Fund on Capital Expenditure of The NTB Provincial Government
1Rahayu Intan Lestari, 2Prayitno Basuki
1,2Faculty of Economics and Business, University of Mataram & Lombok, Indonesia
DOI : https://doi.org/10.47191/ijmra/v7-i01-10

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ABSTRACT:

The authority and policy of regional autonomy is carried out by the regional government. Local governments can facilitate economic growth and regional development, reduce community inequality, and advance community services more effectively according to the needs of local communities. This research aims to determine the effect of economic growth, local original income, general allocation funds, special allocation funds, profit sharing funds on capital expenditure in the West Nusa Tenggara province. By using quantitative research and using panel data regression model tools. The study's results stated: (1) Economic Growth is not significantly influenced by capital expenditure with t calculated at 0.3562 > of its significance value of 0.05. (2) PAD does not significantly affect capital expenditure because the calculated t result is 0.9951 > its significance of 0.05. (3) In DAU, the result t is calculated at 0.5908 > of its significance value of 0.05. Thus, DAU has no significant effect on capital expenditure. (4) DAK has a significant influence on capital expenditure. It can be seen from the t count of 0.00 < from the significance value of 0.05. (5) DBH is not significantly affected by capital expenditure. With a calculated t value of 0.5275 > of the significance value of 0.05, the variables Economic growth, regional original revenue, general allocation funds, and profit sharing funds do not significantly affect capital expenditure. In contrast, the variables of Special allocation funds significantly impact capital expenditure.

KEYWORDS:

Economic Growth, Local Original Revenue, General Allocation Fund, Special Allocation Fund, Profit Sharing Fund and Capital Expenditure

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Volume 07 Issue 01 January 2024

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