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All Journal Archipel: Journal of Indonesian Interdisciplinary Studies
Yulizar Yulizar
Economics and Business, Syiah Kuala University, Banda Aceh, Indonesia
Humanities Economics, Econometrics & Finance Education Environmental Science Social Sciences

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The Role Of Governance And Digitalization As Moderating Variables In The Effect Of Village Funds On Economic Growth In South Aceh Regency Yulizar Yulizar; Shabri Abd. Majid; Putri Bintusy Syathi
Archipel: Journal of Indonesian Interdisciplinary Studies Vol. 1 No. 12 (2026): Archipel - August
Publisher : PT. AVID MEDIA INDONESIA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.65739/archipel.v1i12.77

Abstract

This study aims to analyze the effect of Village Funds on economic growth with governance and digitalization as moderating variables in South Aceh Regency. The study employed a quantitative approach using panel data regression through the Random Effect Model (REM). The data used consisted of panel data from 260 villages during the 2019–2023 period. The results indicate that Village Funds have a positive and significant effect on economic growth in South Aceh Regency. This finding shows that increasing Village Fund allocations can stimulate community economic activities through infrastructure development and productive economic activities. Meanwhile, governance and digitalization show positive but insignificant relationships with economic growth. Furthermore, governance and digitalization as moderating variables have not been able to strengthen the influence of Village Funds on economic growth. The findings imply that the effectiveness of Village Fund utilization plays a more important role in promoting economic growth than governance quality and digitalization implementation. Therefore, village governments need to improve governance capacity, strengthen supervision mechanisms, and accelerate digital transformation to support sustainable rural economic development.
Co-Authors Putri Bintusy Syathi Shabri Abd. Majid