The Role Of Economic Growth : The Effect Of Regional General Income And Balancing Fund On Capital Expenditure

Abstract

This study uses the dependent variable, namely capital expenditure calculated by
expenditure on land, equipment and machinery, buildings and buildings, roads,
irrigation, networks, and other fixed assets and the independent variable is the
original opinion of the region and the balancing fund measured using the amount of
each district government in East Java Province. With the population of all districts
registered with the Central Statistics Agency (BPS) with a sample of 29 districts for
the 2019-2022 period. Sampling is carried out by purposive sampling method, where
samples are selected based on criteria made by researchers. Data were analyzed by
descriptive analysis techniques, classical assumption tests and Moderated Regression
Analysis (MRA) using SPSS 26. The results of this study show that regional general
income affects capital expenditure, balancing funds affect capital expenditure, while
with economic growth, regional original income has no effect and balancing funds
affect capital expenditure.