AFEBI Economic and Finance Review
Vol 6, No 1 (2021)

The Role of Good Governance Toward Economic Growth of Riau Province

Y Rahmat Akbar (STIE Persada Bunda)
Resti Riandi (Unknown)



Article Info

Publish Date
23 Jun 2021

Abstract

This study aims to analyze the effect of good governance on regional financial performance and allocation of capital expenditures and their impact on economic growth in districts and cities in Riau Province. The research was conducted quantitatively with a causal and descriptive research design. The population in this study were 12 districts and cities in Riau Province. Data samples were obtained from the Revenue Service and the Regional Financial and Asset Management Office of Riau Province. The research was carried out by census on budget realization reports from 2016 to 2020 so that 60 data were obtained. The data analysis technique used was Partial Least Square (PLS) analysis. The results of this study indicate that good governance has a significant effect on regional financial performance and allocation of capital expenditures. Regional financial performance has a significant effect on the allocation of capital expenditures and does not have a significant effect on economic growth. Direct capital expenditure allocation has no significant effect on economic growth. Indirectly, good governance has a significant effect on economic growth through regional financial performance and allocation of capital expendituresThis study aims to analyze the effect of good governance on regional financial performance and allocation of capital expenditures and their impact on economic growth in districts and cities in Riau Province. The research was conducted quantitatively with a causal and descriptive research design. The population in this study were 12 districts and cities in Riau Province. Data samples were obtained from the Revenue Service and the Regional Financial and Asset Management Office of Riau Province. The research was carried out by census on budget realization reports from 2016 to 2020 so that 60 data were obtained. The data analysis technique used was Partial Least Square (PLS) analysis. The results of this study indicate that good governance has a significant effect on regional financial performance and allocation of capital expenditures. Regional financial performance has a significant effect on the allocation of capital expenditures and does not have a significant effect on economic growth. Direct capital expenditure allocation has no significant effect on economic growth. Indirectly, good governance has a significant effect on economic growth through regional financial performance and allocation of capital expenditures

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Journal Info

Abbrev

aefr

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Economic and Finance Review (AEFR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AEFR is aimed as an outlet for theoretical and empirical research in the field of economics and to disseminate ...