PENGARUH PENDAPATAN ASLI DAERAH DAN DANA PERIMBANGAN TERHADAP PERTUMBUHAN EKONOMI SELURUH PROVINSI DI INDONESIA

Abstract

ABSTRACTThis study examines the effect of regional original revenues (PAD) and balancing funds on economic growth of all provinces in Indonesia. The data used is panel data from 2015 to 2020. The method used is panel data regression analysis using Eviews 10. The results of the study show that, partially PAD has no effect on economic growth of all provinces in Indonesia in 2015-2020, while balancing funds have a positive and significant effect on economic growth. Simultaneously, PAD and balancing funds have a positive and significant effect on economic growth of all provinces in Indonesia in 2015-2020. Based on the results of this study, it is suggested the central and local government utilize balancingfunds optimally in order to increase the economic growth of each region in Indonesia.Keywords: Regional Original Revenues, Balancing Funds, Economic Growth.