The Effect of Government Capital Expenditure on Economic Growth and Its Impact on Community Welfare

Nelly Masnila, Lisnini, Silvana Oktanisa

2018

Abstract

Capital expenditure is government expenditure for development activities such as infrastructure development, basic facilities, and other infrastructure. In economic theories, it is stated that government spending is one of keys to economic growth. Economic growth is an indicator that a country/region experiences a development. In turn, continuous and sustainable economic growth will improve the welfare of the community. This study used panel data related to the variables studied from 34 provinces in the 2012-2016 periods. Multiple regression analysis is used to test and analyse the effect of growth and capital expenditure on the human development index. From the results of this study it can be concluded that government capital expenditure and economic growth together influence the welfare of the community. But partially, only capital expenditure has a significant positive effect on people's welfare, while economic growth shows no influence.

Paper Citation

in Harvard Style

Masnila N., Lisnini. and Oktanisa S. (2018). The Effect of Government Capital Expenditure on Economic Growth and Its Impact on Community Welfare. In Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST, ISBN 978-989-758-574-6, pages 113-117. DOI: 10.5220/0009153400002500

in Bibtex Style

@conference{first18,
author={Nelly Masnila and Lisnini and Silvana Oktanisa},
title={The Effect of Government Capital Expenditure on Economic Growth and Its Impact on Community Welfare},
booktitle={Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST,},
year={2018},
pages={113-117},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009153400002500},
isbn={978-989-758-574-6},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST,
TI - The Effect of Government Capital Expenditure on Economic Growth and Its Impact on Community Welfare
SN - 978-989-758-574-6
AU - Masnila N.
AU - Lisnini.
AU - Oktanisa S.
PY - 2018
SP - 113
EP - 117
DO - 10.5220/0009153400002500