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All Journal Indonesian Journal of Islamic Economics and Finance
Serly Charita Harahap
Universitas Islam Negeri Sumatera Utara, Medan
Economics, Econometrics & Finance Social Sciences

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The Impact of Community Trust and Participation on Village Fund Utilization and Rural Economic Development: A Case Study of Padang Matinggi Village, Padang Lawas Regency Serly Charita Harahap; Purnama Ramadani Silalahi; Waizul Qarni
Indonesian Journal of Islamic Economics and Finance Vol. 6 No. 1 (2026)
Publisher : Institut Agama Islam Sunan Giri Ponorogo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37680/ijief.v6i1.10102

Abstract

This study aims to analyze the effects of community trust and community participation on Village Fund utilization and rural economic development in Padang Matinggi Village, Padang Lawas Regency. A quantitative survey method was applied to 96 respondents using purposive sampling and analyzed with multiple linear regression (SPSS). The results show that community trust has a positive and significant effect on Village Funds Utilization (t = 13.749; sig. < 0.05) and village economic improvement (t = 3.734; sig. < 0.05), community participation has a positive and significant effect on Village Funds Utilization (t = 12.154; sig. < 0.05) and village economic improvement (t = 3.272; sig. < 0.05), and Village Fund utilization has a positive and significant effect on village economic improvement (t = 2.873; sig. = 0.005 < 0.05). Community trust and community participation simultaneously explain 73.9% of the variation in Village Fund utilization, while all three variables simultaneously explain 41.5% of the variation in village economic improvement (F = 21.749; sig. < 0.05), with the remaining 58.5% influenced by other factors outside this study. Therefore, strengthening community trust and participation is essential to optimizing Village Fund management for sustainable village economic growth.
Co-Authors Purnama Ramadani Silalahi Waizul Qarni