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The Influence of Economic Growth on Regional Original Revenue in Jayapura City, 2014–2023 Iqbal, Muh.; Antoh, Agustina Ester; Indahyani, Rachmaeny; Urip S, Transna Putra; Rusianti, Anita; Kbarek, Maria
Journal of International Conference Proceedings Vol 8, No 2 (2025): 2025 ICPM Thailand Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v8i2.4341

Abstract

Economic growth plays an important role in strengthening local fiscal capacity, particularly through Regional Original Revenue, which reflects the financial independence of local governments. This study analyzes the effect of economic growth on Regional Original Revenue in Jayapura City during the period 2014–2023 using a quantitative approach. The research applied classical assumption tests, including normality, autocorrelation, and heteroscedasticity, followed by simple linear regression, hypothesis testing, and coefficient of determination analysis. The results indicate that the model meets all statistical assumptions, ensuring its validity for interpretation. The analysis reveals a positive and significant relationship between economic growth and Regional Original Revenue, supported by a t-test significance of 0.001, which is less than the 0.05 criterion. The coefficient of determination (R²) is 0.752, showing that 75.2% of the variation in Regional Original Revenue is explained by economic growth, while 24.8% is influenced by other factors. The study concludes that sustained economic growth is crucial for strengthening fiscal independence in Jayapura City.