Local Income and Economic Growth

Abstract

The objective of this study is to identify the direct influence of local income components, i.e. regional tax, revenue sharing fund of tax from the central government, revenue sharing fund of tax from the provincial government, and General Allocation Grant, on economic growth and its indirect influence through the components of local expenditures, i.e. goods, services, and capital expenditure and personnel expenditure, as mediator variables. In addition, investment and labor are included as control variables. This study uses path analysis with six exogenous variables i.e. regional tax, revenue sharing fund from the provincial and central government, General Allocation Grant, and two control variables, i.e. labor and investment. Endogenous variables of this study are economic growth, goods, services, and capital expenditure, and personnel expenditure. Two of the components of local expenditures also serve as mediator variables. The results of this study indicate that the component of income such as regional tax has a direct influence on and has a positive and significant relationship only with goods, services, and capital expenditure, General Allocation Grant has a direct influence on and a positive and significant relationship with goods, services, and capital expenditure as well as personnel expenditure, but it has a negative and significant effect on economic growth. In addition, General Allocation Grant also has a significant indirect effect and a positive relationship with economic growth through personnel expenditure. Revenue sharing fund of tax from the central government has a direct and positive influence and a significant relationship with personnel expenditure and economic growth. In addition, revenue sharing fund of tax from the central government also has an indirect and significant influence and is positively related to economic growth if only it goes through personnel expenditure. Whereas, revenue sharing fund of tax from the provincial government has a direct influence on and a positive insignificant relationship with goods, services, and capital expenditure as well as personnel expenditure, and it has an insignificant negative relationship with economic growth. As for components of local expenditures, only personnel expenditure that has a positive and significant relationship with economic growth, while goods, services, and capital expenditure have a negative and insignificant relationship with economic growth. Regarding control variables, investment has a positive and significant relationship with economic growth, and labor has a negative and significant relationship with economic growth. KEY WORDSEconomic growth, revenue sharing fund, central government, goods, services, capital expenditure, personnel expenditure, investment, labor. Decentralization, both political decentralization and fiscal, affects the outcome of development (Kalirajan and Otsuka, 2012). In addition, it is more dominant in increasing economic growth than centralization (Chu and Yang, 2012). The spirit of decentralization is i...

Faktor Faktor Determinant Pertumbuhan Ekonomi Regional Pada Masa Pandemi Di Jawa Tengah

“…Berdasarkan penelitian sebelumnya, penelitian (Aini et al, 2019), (Akhmad et al, 2019), (Sengaji et al, 2019), (Sukmaadi & Marhaeni, 2021) dan (Tuwo et al, 2021) menemukan hasil bahwa pendapatan asli daerah atau PAD berdampak positif pada pertumbuhan ekonomi regional. Serta (Diastrina, 2021) dan (Djayanthi & Juniarti, 2020) menyebutkan bahwa adanya dampak yang signifikan antara PAD dengan pertumbuhan ekonomi regional.…”

“…Sedangkan (Djayanthi & Juniarti, 2020) dan (Saputra et al, 2021) menyatakan bahwa belanja modal dengan pertumbuhan ekonomi regional hanya mempunyai pengaruh saja. Tetapi (Akhmad et al, 2019) dan (Tuwo et al, 2021) menemukan hasil bahwa terdapat dampak negatif antara belanja modal dengan pertumbuhan ekonomi regional. (Dwiarta & Asjari, 2020) menyatakan bahwa antara belanja modal dengan pertumbuhan ekonomi regional tidak memiliki dampak.…”

“…Semua penerimaan daerah yang bersumber dari pungutan wilayah sendiri serta sumber ekonomi asli dari daerah tersebut sesuai perda dari perundang undangan yang berlaku merupakan pendapatan asli daerah (Tuwo et al, 2021). Sedangkan menurut (Akhmad et al, 2019), mendefinisikan PAD sebagai pendapatan yang diperoleh dari hasil pajak daerah, retribusi daerah serta hasil kekayaan daerah yang dipisahkan dan pendapatan daerah yang sah.…”

“…Hasil penelitian terdahulu, diantaranya menyatakan tentang keterkaitan antara PAD dengan pertumbuhan ekonomi yang telah dikaji sebelumnya oleh (Aini, Kurnia, & Wibisono, 2019), (Sengaji, Sasongko, & Sakti, 2019), (Sukmaadi & Marhaeni, 2021), (Akhmad, 2019) dengan hasil pendapatan asli daerah atau PAD berdampak positif pada pertumbuhan ekonomi daerah. Pada teori Solow-Swan menyatakan, pertumbuhan ekonomi dapat dipengaruhi oleh sumberdaya manusia dan sumberdaya modal.…”

“…Jika suatu wilayah memiliki kualitas dan kuantitas manusia yang baik begitu pula dengan modal yang ada, maka produktivitas daerah tersebut juga akan semakin meningkat begitu juga pertumbuhan ekonomi regionalnya. Hasil penelitian ini mendukung penelitian (Aini, Kurnia, & Wibisono, 2019), (Sengaji, Sasongko, & Sakti, 2019), (Sukmaadi & Marhaeni, 2021) dan (Akhmad, 2019). Dalam penelitiannya yang memiliki hasil penelitian berupa variabel PAD berdampak positif pada pertumbuhan ekonomi regional.…”