Influence of Number of Working Population, Percapita Grdp, and Government Expenditures on Increasing Regional Original Income

Abstract

This study aims to determine the effect of the number of working population, GRDP per capita and government spending on increasing local revenue in districts/cities of North Sumatra Province from 2016 to 2021.The type of research used is descriptive quantitative from time series and cross section data. The cross section data in this study are 33 regencies/cities in North Sumatra Province while the time series data in this study are 2016-2021, using secondary data in the form of panel data. This study uses the REM model (Random Effect Model) which is selected using the Chow Test, Hausman Test and Lagrangem Multiplier Test.The results showed that the variable number of working population had a positive and not significant effect on increasing district/city original income in North Sumatra Province, per capita GRDP variable had a significant positive effect on increasing district/city original income in North Sumatra Province government spending variables had a significant positive effect to the increase in district/municipality regional revenue in North Sumatra Province.