Volume 19, Number 1, June 2024
| The Role of Goods and Services Expenditure on Local Own-Source Revenue (Study in North Kalimantan, Indonesia) |
Abstract
This study aims to explore the relationship between spending on goods and services and the revenue generated locally in North Kalimantan Province, Indonesia. By combining different types of data, the research seeks to provide a thorough analysis of this connection. Various statistical tests, including the Chow, Hausman, and Lagrange multiplier tests, are conducted to determine the most appropriate model, with the results favoring the Random Effect Model. The findings from the panel data regression analysis, using the Random Effect Model, indicate a positive and statistically significant impact of goods and services expenditure on local revenue in the Regency/City Governments of North Kalimantan Province. This suggests that increasing investments in goods and services plays a significant role in boosting economic prosperity in the region. This study contributes valuable insights to existing knowledge by shedding light on the link between goods and services expenditure and local revenue in North Kalimantan Province. The results emphasize the importance of enhancing investments in goods and services, highlighting their crucial role in driving regional economic growth.
Keywords: Regional Autonomy; Goods and Services Expenditure; Local Own-Source Revenue
JEL Classification: R10, H72, H71