The Impact of Local Own-Source Revenue, General Allocation Funds, Revenue-Sharing Funds, and Capital Expenditures on Regional Gross Domestic Product in West Nusa Tenggara Province, 2019–2025

Ni Putu Ayu Vina Puspita; Irwan Suriadi

doi:10.55681/economina.v5i9.4369

Authors

Ni Putu Ayu Vina Puspita Universitas Mataram, Indonesia
Irwan Suriadi Universitas Mataram, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i9.4369

Keywords:

Local Own-Source Revenue, General Allocation Funds, Revenue-Sharing Funds, Capital Expenditure, Gross Regional Domestic Product

Abstract

This study examines how the Gross Regional Domestic Product (GRDP) of West Nusa Tenggara Province is affected by Local Own-Source Revenue (PAD), General Allocation Fund (DAU), Revenue Sharing Fund (DBH), and Capital Expenditure. It uses a quantitative approach backed by an associative research design. The study relies on secondary panel data consisting of 70 observations from ten regencies and cities in West Nusa Tenggara Province from 2019 to 2025. To evaluate the impact of independent variables on GRDP, panel data regression analysis is used. The empirical results show that local revenue and revenue-sharing funds have a positive and statistically significant effect on GRDP, while general allocation funds and capital expenditure also have a positive effect, but are not statistically significant on GRDP. Collectively, local own-source revenue, general allocation funds, revenue-sharing funds, and capital expenditure have a significant effect on GRDP. The findings highlight the importance of strengthening regional fiscal capacity, particularly through the effective management and optimization of local own-source revenue and revenue-sharing funds, to support regional economic activity and development.

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