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All Journal International Journal of Social and Education (INJOSEDU)
Ella Oktavinata Syahputri
Politeknik Negeri Lhokseumawe

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THE INFLUENCE OF REVENUE-SHARING FUNDS, GENERAL ALLOCATION FUNDS, AND SPECIAL ALLOCATION FUNDS ON THE ECONOMIC GROWTH OF REGENCIES/CITIES IN NORTH SUMATRA PROVINCE Ella Oktavinata Syahputri; Indra Wijaya; Fakriah
INJOSEDU: International Journal of Social and Education Vol. 3 No. 6 (2026): International Journal of Social and Education (INJOSEDU)
Publisher : Adisam Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.22268101

Abstract

This study analyzes the impact of Revenue-Sharing Funds, General Allocation Funds, and Special Allocation Funds on the economic growth of regencies and cities in North Sumatra Province. The study employs a quantitative approach using panel data regression analysis. Secondary data were obtained from Statistics Indonesia (BPS) and the Directorate General of Fiscal Balance. Model selection was conducted through panel data model testing, identifying the Fixed Effect Model as the most appropriate. The results indicate that Revenue-Sharing Funds have a positive relationship with economic growth but do not exert a significant influence. Conversely, both General Allocation Funds and Special Allocation Funds have a positive and significant impact on economic growth. Collectively, these three transfer funds significantly influence economic growth. These findings demonstrate that the effectiveness of fiscal transfers is determined not only by the magnitude of regional revenue but also by the local government's ability to direct funds toward productive development and public services. Therefore, the management of General Allocation Funds and Special Allocation Funds needs to be directed more effectively to strengthen fiscal capacity, infrastructure, public services, and regional economic activity.
Co-Authors Fakriah Indra Wijaya