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The Influence of Direct Expenditure, Indirect Expenditure and and General Allocation Funds on the Economic Growth of District/Cities of North Sumatera Province

Authors
  • Martha M Siregar Program Studi Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis Universitas Sumatera Utara, Medan 20155, Indonesia
  • Syech Suhaimi Program Studi Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis Universitas Sumatera Utara, Medan 20155, Indonesia
Issue       Vol 8 No 1 (2025): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA)
Section       Articles
Section      

Copyright (c) 2025 Talenta Conference Series

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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DOI: https://doi.org/10.32734/lwsa.v8i1.2383
Keywords: Direct Expenditure Indirect Expenditure General Allocation Fund Economic Growth
Published 2025-02-28

Abstract

This study aims to analyze the effect of direct spending, indirect expenditure and general allocation funds on the economic growth of district/cities of North Sumatra Province. Type of this research used is descriptive quantitative. The data used in this study are secondary data obtained from the Central Statistics Agency and the Directorate General of Financial Balance. The analysis tool used in this study is panel data regression using Fixed Effect Model with the help of Eviews 12 Program. The sample in the study consisted of 33 districts/cities for 10 years from 2012-2021. The results of the study using Fixed Effect Model estimates show that Direct Expenditure, Indirect Expenditure and General Allocation Fund simultaneously have a significant effect on economic growth in North Sumatra Province. Direct Expenditure has a significant effect on economic growth in North Sumatra Province. Indirect Expenditure does not have a significant effect on economic growth in North Sumatra Province and the General Allocation Fund has a significant effect on economic growth in North Sumatra Province.