CAUSES OF ECONOMIC GROWTH IN INDONESIA: EVIDENCE FROM EIGHTEEN PROVINCES
One of the targets of Indonesia's national development is to create economic growth and equity of development outcomes, including the distribution of income among regions. Indonesia's national development of the next five years needs to prioritize efforts to achieve food sovereignty, energy adequacy and management of maritime and marine resources (Medium Term Development Plan 2014-2019). In order to achieve the national goal, the nation is faced with three main issues, namely: (1) the decline of state authority; (2) the weakening of the joints of the national economy; and (3) the outbreak of intolerance and personality crisis of the nation. (418.6Kb)
BASUKI, AGUS TRI
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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.