The Effect Of Local Original Income, Regional Transfer Funds And Capital Expenditure On The Rate Of Economic Growth In Districts/Cities Of West Nusa Tenggara Province 2016-2024

Dian Farisya; Diswandi Diswandi; M.  Firmansyah

doi:10.55681/economina.v5i5.2147

Authors

Dian Farisya Universitas Mataram, Mataram, Indonesia
Diswandi Diswandi Universitas Mataram, Mataram, Indonesia
M. Firmansyah Universitas Mataram, Mataram, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i5.2147

Keywords:

PAD, transfer funds, Capital Expenditures, economic growth, panel data, West Nusa Tenggara

Abstract

This study aims to analyze the impact of Local Revenue (PAD), Transfer Funds, and Capital Expenditures on the economic growth rate of regencies and cities in West Nusa Tenggara Province from 2016 to 2024, taking into account regional differences based on the presence of mining and tourism activities. This study uses secondary quantitative data in the form of panel data consisting of time-series and cross-sectional data from 10 districts/cities in West Nusa Tenggara. The analysis method employed is panel data regression using the Common Effect Model (CEM) approach with Stata software. The results indicate that, individually, PAD and Transfer Funds have a positive and significant effect on economic growth, while Capital Expenditures have a negative and significant effect. The dummy variables for mining and tourism regions do not have a significant effect on economic growth. Simultaneously, all independent variables have a significant effect on economic growth; however, the model’s ability to explain variations in economic growth remains relatively low. This finding indicates that the economic growth of regencies/cities in NTB Province is not only driven by fiscal variables, but there is also the potential influence of factors outside the research model.

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