Research Paper
Year: 2019 | Month: December | Volume: 6 | Issue: 12 | Pages: 489-503
Analysis of Regional Original Income Effects, Balance Funds, Consumption and Labor Force Participation Rate for Economic Growth in North Sumatera Province
Tomry Aritonang1, Eko W. Nugrahadi2, Indra Maipita2
1Posgraduate Students, Department of Economics, Universitas Negeri Medan, Indonesia
2Postgraduate Lecturer, Department of Economics, Universitas Negeri Medan, Indonesia
Corresponding Author: Tomry Aritonang
ABSTRACT
In the era of Regional Autonomy, good governance has become an inevitable existence and absolutely must be fulfilled, where the two most important variables of good governance are transparency and accountability at the level of budget administrative policies. The purpose of this study is to analyze and determine the effect of Local Revenue (PAD), Balance Fund (DP) and Community Consumption Level (KONS) and Labor Force Participation Rate (TPAK) on Economic Growth (PE) in the Regency/City of North Sumatera Province. By using secondary data from 2013-2017 as well as by combining times series data combined with cross section or better known (pooled data/panel data). The results showed that the cost of income and TPAK had a positive and significant effect on district/city PE in North Sumatra Province, Consumption has a negative and significant effect on district / city PE in North Sumatra Province, while the PAD and DP have a negative and not significant effect on the regency / city of North Sumatra Province. Estimation results also show that the Labor Force Participation Rate variable has the greatest influence on the Economic Growth model compared to the variable Local Revenue, Cost of Revenue and Consumption in the districts / cities of North Sumatra Province.
Key words: PAD, DP, KONS, TPAK, PE, Time Series, Cross Section, Pooled, Panel.
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