Year: 2024 | Month: April | Volume: 11 | Issue: 4 | Pages: 302-317
DOI: https://doi.org/10.52403/ijrr.20240434
The Influence of Local Revenue, General Allocation Fund, Revenue Sharing Fund, Regional Investment, Special Allocation Fund on Regional Expenditure with Economic Growth as a Moderating Variable in Districts/Cities in North Sumatra Province During the Period 2016-2020
Arlina Ginting1, Azhar Maksum2, Tarmizi3
1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Arlina Ginting
ABSTRACT
This research aims to determine the influence of Regional Original Income (PAD), General Allocation Funds (DAU), Profit Sharing Funds (DBH), Regional Investment, and Special Allocation Funds (DAK) on Regional Expenditures with Economic Growth as a Moderating Variable in Regency/City in North Sumatra Province for the 2016 – 2020 period. This type of research is causal. The population of this research is all Regency/City Governments in North Sumatra Province, totaling 33 districts and cities consisting of 25 districts and eight cities. The sample in this study was saturated with an observation period of 5 years (2016 - 2020), so the total sample for this study was 165. The variables used are PAD, DAU, DBH, ID, and DAK as independent variables, regional expenditure as the dependent variable, and economic growth as a moderating variable. The type of data in this research is secondary data obtained from the website of the Director General of Financial Balance and the BPS website of North Sumatra Province. The data collection method used is in the form of literature, journals, and other sources related to research. The research analysis methods and techniques are panel data regression and the Chow and Hausman tests. This research shows that PAD, DAU, DBH, and DAK positively and significantly affect local expenditure, while investment does not. The results of the moderating test (interaction test) show that DAU and DAK are proven to be moderating variables, while PAD, DBH, and ID are not proven.
Keywords: Original Local Government Revenue (PAD), General Allocation Fund (DAU), Profit Sharing Fund (DBH), Regional investment (ID), Special Allocation Fund (DAK), Regional Expenditure, Economic Growth
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