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Effect of Revenue and General Allocation Fund of Capital Expenditures in the Economic Growth as Moderator Variable. Case of Indonesia

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  • Iskandar Muda
  • Hasnaini Ridha

Abstract

This study aims to determine the factors that influence the allocation of the capital expenditure in the District / City of North Sumatra and Aceh. This study has a sample of 36 districts /cities in North Sumatra and Aceh from 2012-2015. Sample selection is done by purposive sampling method. The data used in this research is secondary data, reports on realization of the Budget Revenue and Expenditure published through the website www.depkeu.djpk.go.id and www.sumut.bps.go.id. The analysis model used is multiple linear regressions with Ordinary Least Square method is carried out with the aid of a computer program EViews version 7.0. The results of this study indicate that all independent variables, namely the Local Revenue and the General Allocation Fund simultaneously significant effect on Capital Expenditure. Partially General Allocation Fund positive and significant impact on Capital Expenditure but local revenue was not positive and significant impact on Capital Expenditure. Economic growth is not fully able to moderate (strengthen / weaken) the relationship between the Local Revenue and the General Allocation Fund to the Capital Expenditure Government of Regency/City in the province of North Sumatra and Aceh province in 2012-2015.

Suggested Citation

  • Iskandar Muda & Hasnaini Ridha, 2018. "Effect of Revenue and General Allocation Fund of Capital Expenditures in the Economic Growth as Moderator Variable. Case of Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 29-39, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:29-39
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    References listed on IDEAS

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    1. Iskandar Muda, 2017. "The Effect of Supervisory Board Cross-Membership and Supervisory Board Members' Expertise to the Disclosure of Supervisory Board's Report: Empirical Evidence from Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 691-705.
    2. Iskandar Muda, 2017. "Role of Dividend of Power to Buy Shares in Companies in Indonesia Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(2), pages 41-47, June.
    3. Iskandar Muda, 2014. "Human Resources Development and Performance of Government Provincial Employees: A Study in North Sumatera, Indonesia," Journal of Economics and Behavioral Studies, AMH International, vol. 6(2), pages 152-162.
    4. Muda, Iskandar, 2017. "Erception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83588, University Library of Munich, Germany.
    5. Iskandar MUDA, 2017. "User Impact of Literacy on Treatment Outcomes Quality Regional Financial Information System," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(2), pages 307-326, June.
    6. Ela Mahdaleta & Iskandar Muda & Gusnardi Muhammad Nasir, 2016. "Effects of Capital Structure and Profitability on Corporate Value with Company Size as the Moderating Variable of Manufacturing Companies Listed on Indonesia Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 30-43, September.
    7. Iskandar Muda, 2017. "Perception Of Capital, Profit And Dividends Affect The Stock Purchase Intention In Indonesia Public Company," Junior Scientific Researcher, SC Research Publishing SRL, vol. 3(1), pages 9-18, May.
    8. Muda, Iskandar, 2017. "Perception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83658, University Library of Munich, Germany.
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    1. Abdhy Aulia Adnans & Iskandar Muda, 2018. "Neoclassical Growth Model Application To The Analysis Of Human Capital For Regional Development," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(4), pages 1-13.

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    More about this item

    Keywords

    Capital expenditure; local Revenues; general allocation funds and economic growth;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories

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