Bima Journal : Business, Management and Accounting Journal
Vol. 6 No. 2 (2025)

Effect Of Government Spending And Investment On Economic Growth In South Sulawesi

Amina, Sitti (Unknown)



Article Info

Publish Date
30 Dec 2025

Abstract

Purpose: This study aims to analyze the effect of government spending and investment on economic growth in South Sulawesi Province. Methodology: This research employs a quantitative approach using secondary data and multiple linear regression analysis to examine the relationship between government spending, investment, and economic growth. Results: The results indicate that government spending has a significant positive effect on economic growth, while investment does not show a statistically significant effect when analyzed individually. However, simultaneous analysis reveals that government spending and investment together significantly influence economic growth. Novelty: This study provides empirical evidence on the differing impacts of fiscal and investment variables on regional economic growth in an Indonesian provincial context. Findings: Well-managed government spending, particularly in strategic sectors, plays a more dominant role in stimulating economic growth compared to investment alone. Originality: The originality of this study lies in its focus on South Sulawesi Province using recent regional economic data to assess fiscal and investment effectiveness. Conclusions: Optimizing government spending allocation and improving the effectiveness of investment policies are essential to achieving sustainable economic growth in South Sulawesi. Type of Paper: Empirical Quantitative Research Paper.

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Journal Info

Abbrev

bima

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

BIMA Journal is a scientific communication media which is issued by PDM Bengkulu. It is the contribution to the development of social science, business, accounting, and economy which is divided into the English Language which contains research results, literature review, field cases, or concepts. ...