Effect of Household Consumption, Unemployment and Government Budget Expenditure on Economic Growth in Urban Areas in North Sumatra Province

Abstract

Regional economic growth is the increase in people's income that occurs in the area. The target for economic growth is of course different from one region to another, this is because the economic potential in each region is different so that the government's policies for regulating it are also different, adjusted to the potential of each region. Regional economic growth is a process of local governments and communities in managing existing resources to create new jobs and stimulate economic growth. This study aims to determine the effect of household consumption, unemployment and urban regional budget spending in North Sumatra Province in 2010-2019. This research is a quantitative study of Time Series and Cross Section data. The cross section data in this study there are eight cities in North Sumatra province while the time series data in this study from 2010 to 2019, using secondary data in the form of panel data whose data were obtained from the central statistics agency. The method used panel least square with models Fix effect. The results of this study indicate that the household consumption variable has an effect on regional economic growth, the unemployment variable has an effect on regional economic growth and the regional  budget expenditure variable has a positive and significant effect on economic growth in urban areas in North Sumatra Province.