Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Analysis of Factors Affecting Regional Economic Growth (Case Study in Regencies / Cities in Solo Raya)
Faisal Yoga Utama, Dewi Ismoyowati

Building: Parallel Session 3
Room: H
Date: 2020-10-27 04:15 PM – 05:30 PM
Last modified: 2020-10-19


This study aims to determine the effect of the degree of fiscal decentralization, capital expenditure, and human development index as factors that influence regional economic growth.

The analytical method used is multiple linear regression test using panel data using the Fixed Effect Model (FEM) and conducted in the Solo Raya region in 2010-2018.

The results of research conducted indicate that the level of fiscal decentralization and individual human development index have a positive and significant effect on regional economic growth. While capital expenditure has a positive but not significant effect on regional economic growth. In addition, the level of fiscal decentralization, capital expenditure, and the human development index simultaneously have a significant influence on regional economic growth.

Increasing the efficiency of tax revenue to encourage regional fiscal aspects, balancing the budget and the realization of capital expenditures, and improving quality in the aspects of health, education, and community work to improve human development are recommended.


Keyword: Regional Economic Growth, Fiscal Decentralization Degree, Capital Expenditure, Human Development Index, Solo Raya