International Journal of Social Science & Economic Research
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Title:
CAUSES OF ECONOMIC GROWTH IN INDONESIA: EVIDENCE FROM EIGHTEEN PROVINCES

Authors:
AGUS TRI BASUKI, MULYANTO


Volume - 2 Issue - 7, Pages - 3772-3789

Abstract:
This study aims to analyze the composition of local government spending (education, health, marine and fisheries, agriculture, and general allocation funds), the number of poor people, inflation, foreign direct investment and opinion Supreme Audit Agency against the Local Government Financial Report to economic growth in several provinces in Indonesia. This study uses data from 18 provinces in Indonesia from 2010 to 2015. The model used in this study is panel data regression, the use of data panels in economic research has several main advantages over the data type cross section and time series. Panel data can provide researchers with a large number of observations, increasing the degree of freedom, data having great variability and reducing the collinearity between explanatory variables, which can produce efficient econometric estimates. Almost all variables have an influence on economic growth (government expenditure for education, government expenditure for health, government expenditure for marine and fishery, government expenditure for agriculture, general allocation fund, foreign direct investment, and inflation), except the number of poor people and opinion of the Supreme Audit Agency against the Local Government Financial Report has no influence on on economic growth.

Cite this Article:

[BASUKI, AGUS TRI, and MULYANTO. "CAUSES OF ECONOMIC GROWTH IN INDONESIA: EVIDENCE FROM EIGHTEEN PROVINCES." International Journal of Social Science & Economic Research 2.7 (2017): 3772-789.]

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