PENGARUH PERTUMBUHAN EKONOMI, PENDAPATAN ASLI DAERAH, DAN DANA PERIMBANGAN TERHADAP BELANJA MODAL

Abstract

Reformation has brought changes to the form of government in Indonesia, which in the beginning it was
centralization now it becomes decentralization structure. The local government is given wide rights and
authorization to manage their own local business and the local government is required to maximize their local
potential to fulfill their local expenditure including the capital expenditure. Therefore, this research is meant to
test whether the economic growth, local own source revenue, and Balance fund give influence to the capital
expenditure to the districts / cities in East Java. The population is all the districts / cities in East Java and the
secondary data and the sample collection technique has been carried out by using purposive sampling method.
Based on the predetermined criteria 108 from 36 districts / cities in East Java, with the observation term is 3
years from 2013 to 2015 have been selected as samples. The analysis method has been conducted by using
multiple linear regressions analysis and the application instrument of Statistical Product and Service Solutions
(SPSS). The result of this research shows that economic growth does not have any influence to the capital
expenditure. Meanwhile, local own source revenue and balance fund has positive influence to the capital
expenditure. Simultaneously, the independent variables have significant influence to the dependent variable with
its significance level is 0,000.
Keywords: Economic growth, Local own source revenue, balance fund, capital expenditure.