Determinants of Government Spending and Investment on District/ City Economic Growth in Jambi Province.

Abstract

his research is entitled Determinants of Government Spending and Investment on the Economic Growth of Districts and Municipalities in Jambi Province. The study aims to determine and analyze the Determinants of Employee Expenditure, Capital Expenditure, Goods and Services Expenditure, PMDN, and PMA on District/City Economic Growth in Jambi Province in 2017-2022. The analysis method uses quantitative descriptive analysis with secondary data, the analysis tool uses panel data regression using cross-section data, namely the research objects of 11 districts and cities in the province, and time series data, namely 2017-2022 with a total number of observations of 66 objects, then using tests related to panel data regression, namely the selection of chow test models, Hausman tests, and Lagrange multiplier tests, and using statistical F and T hypothesis tests and coefficients of determination. The results showed that the regression estimation of panel data using the fixed effect model showed that the variables of capital expenditure, employee expenditure, and expenditure on goods and services had a significant effect on the economic growth of regencies and cities in Jambi Province. In contrast, the variables of foreign investment and domestic investment did not have a significant effect on the economic growth of Regencies and cities in Jambi Province.