Pengaruh Belanja Pembangunan dan Pendapatan Asli Daerah (PAD) terhadap Pertumbuhan Ekonomi pada Kabupaten dan Kota di Sumatra

Abstract

Fiscal decentralization brings more advantages for regions to manage their own fiscal capacities. Regions governments have opportunity to increase economic efficiency because the governments have informational advantages concerning resource allocation. The governments are in the better position to provide the kind ofpublic goods and services that closely meets the local needs. This study tends to examine the impact of the changes of expenditure structure both to the economics growth and also to the regional own revenue. It is also intended to examine the direct and indirect effect the changes of capital expenditure to the regional own revenue. In relationwith the changes of expenditure structure, the research finds that it significantly influences both regional economics growth and regional own revenue. It also finds that the government's decision to allocate the greater capital expenditure to the supported economic growth infrastructures will brings more regional own revenue.