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Nexus between Capital Expenditure and Economic Growth in Indonesia in the Covid-19 Pandemic Fadhilah, Hanifah Zulfa; Chandra, Herlina Aria; Wahyuningsih, Merliana; Badrudin, Rudy
Journal of Business & Banking Vol 12 No 2 (2022): November 2022 - April 2023
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jbb.v12i2.3293

Abstract

This study aimed to determine the relationship between capital expenditure and the Covid-19 pandemic on economic growth in Indonesia. This study used a sample of all provinces in Indonesia, consisting of 34 provinces in 2019-2021. It analysed the data by using an Analysist Covariate or ANCOVA. The results showed that capital expenditure had no effect on economic growth while the Covid-19 pandemic had a positive effect on economic growth. The Covid-19 pandemic in this study was initially formulated that the Covid-19 pandemic had a negative impact, but the results of the study said otherwise. The positive influence of the Covid-19 pandemic is due to the digitalization of the economy. Capital expenditure issued by the government during the pandemic has not been able to increase economic growth. Therefore, the government must consider the allocation of capital expenditures in the APBD and supervise the implementation of the APBD, especially during the Covid-19 pandemic.
Nexus between capital expenditure and inclusive economic growth during the Covid-19 pandemic Chandra, Herlina Aria; Badrudin, Rudy
Journal of Business and Information Systems (e-ISSN: 2685-2543) Vol. 6 No. 2 (2024): Journal of Business and Information Systems
Publisher : Department of Accounting, Faculty of Business, Universitas PGRI Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31316/jbis.v6i2.248

Abstract

Regional economic development can lead to an increase in economic growth, a reduction in unemployment and inequality, and a decrease in poverty levels in the area. However, the COVID-19 pandemic has resulted in a decline in economic activities, causing increasing unemployment and poverty in Indonesia. This study aims to analyze the influence of Regional Original Revenue (ROR) and General Allocation Fund (GAF) on capital expenditure and economic growth, with the COVID-19 pandemic as a moderating variable in all districts and cities throughout Indonesia from 2019 to 2022. The sample consists of 341 districts and cities with complete data on the required variables. The analytical techniques employed include path analysis, descriptive analysis, model fit, and multicollinearity tests. The research findings indicate that ROR and GAF significantly positively affect capital expenditure. Capital expenditure can mediate the relationship between ROR, GAF, and economic growth. However, economic growth cannot mediate the relationship between capital expenditure and unemployment or poverty. Covid-19 is found to negatively moderate the relationship between capital expenditure and unemployment while positively moderating the relationship between capital expenditure and poverty