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Rizki Linda Afiska
Fakultas Ekonomika dan Bisnis Universitas Islam Indonesia, Indonesia
Economics, Econometrics & Finance

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Determinants of Economic Growth in Special Autonomous Regions: Does Capital Expenditure Important? Rizki Linda Afiska
E-Jurnal Akuntansi Vol 34 No 11 (2024)
Publisher : Accounting Department, Economic and Business Faculty of Universitas Udayana in collaboration with the Association of Accounting Department of Indonesia, Bali Region

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24843/EJA.2024.v34.i11.p06

Abstract

This study aims to examine the influence of balancing funds, special autonomy funds, and regional own-source revenues on economic growth, with capital expenditure as an intervening variable. A purposive sampling method was used, selecting three Indonesian provinces: Aceh, Papua, and West Papua. Data analysis was conducted using panel data regression and path analysis models.The results indicate that balancing funds and regional own-source revenues do not significantly influence capital expenditure, whereas special autonomy funds have a significant positive effect on capital expenditure. Additionally, balancing funds, specialautonomy funds, and regional own-source revenues directly have a significant positive effect on economic growth, while capital expenditure does not significantly impact economic growth. Path analysis further reveals that capital expenditure does not mediate the relationship between balancing funds, special autonomy funds, regional own-source revenues, and economic growth.
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