The Impacts Of Government Expenditure, Human Development Index And Original Regional Government Revenue, On Gross Domestic Regional Product In West Java (2015-2019) Using Spatial And Panel Data Analysis.

Abstract

GRDP is defined as an indicator in the amount of value of goods or services as well as the added value produced by all economic activities in an area, in this study researcher used West Java province because West Java has potentials to increasing GRDP value such as human resources, natural resources and the biggest populations in our country come from West Java Province. This analysis aims to find out the factors that influence GRDP at constant price in West Java Province in the period of 2015-2019, and the factors in this research that researcher used is Government expenditure (GE), Human Development Index (HDI), and Original Regional Government Revenue (ORGR). The data obtained for this study is secondary data, taken from the Central Bureau of Statistic (BPS). In this study, the researcher uses the spatial and panel data model. Panel Data model is a mixture of cross-section data and time-series data and is analyzed using Eviews 9 software, with multiple linear regression models of fixed-effect analysis as the chosen model. In the spatial model, to find out the spatial dependency can be done using Spatial Auto-regressive as the chosen model. This spatial model uses cross-section data in 2019 which is analyzed using Geoda software. This study is a quantitative study with panel data of 27 regencies / municipalities in West Java during 2015-2019 periods. The research findings show that the Human Development Index (HDI) and Original Regional Government Revenue (ORGR) variables have a positive and significant impact on GRDP at a constant price in West Java. Meanwhile, the Government Expenditure variable has positive and insignificant effect on GRDP at a constant price.