The Effect of Government Revenue and Population on Capital Expenditure and Its Impact on Economic Growth in North Sumatera Province

Octreshia Ellendythia Marpaung, Indra Maipita, Muhammad Fitri Rahmadana

2018

Abstract

Developing countries depend on expanding fiscal policies to increase economic growth. Fiscal policy affects the economy of a country through government revenues and expenditures. This study aims to analyze the effect of local revenue, balancing funds and population to capital expenditure and analyze the effect of capital expenditure on economic growth of districts / cities in North Sumatra Province. This study uses economic growth rate, capital expenditure, local revenue, balancing fund and population of 33 districts / cities in North Sumatera Province for the period from 2011 to 2016 in percent. This study analyzes the data by applying pooled dataanalysis with random effect model. The result indicates that local revenue, balancing fund and total population together significantly influence capital expenditure in regencies / cities in North Sumatera Province. Partially population has no effect on the allocation of capital expenditure. Capital expenditure has a positive and significant impact on economic growth. However, the development should be based on the concept of environmentally sustainable development in economic, social and environmental aspects to meet current needs without sacrifice fulfillment the needs of future generations

Paper Citation

in Harvard Style

Ellendythia Marpaung O., Maipita I. and Fitri Rahmadana M. (2018). The Effect of Government Revenue and Population on Capital Expenditure and Its Impact on Economic Growth in North Sumatera Province. In Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD, ISBN 978-989-758-543-2, pages 325-331. DOI: 10.5220/0009902300002480

in Bibtex Style

@conference{icnrsd18,
author={Octreshia Ellendythia Marpaung and Indra Maipita and Muhammad Fitri Rahmadana},
title={The Effect of Government Revenue and Population on Capital Expenditure and Its Impact on Economic Growth in North Sumatera Province},
booktitle={Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,},
year={2018},
pages={325-331},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009902300002480},
isbn={978-989-758-543-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Natural Resources and Sustainable Development - Volume 1: ICNRSD,
TI - The Effect of Government Revenue and Population on Capital Expenditure and Its Impact on Economic Growth in North Sumatera Province
SN - 978-989-758-543-2
AU - Ellendythia Marpaung O.
AU - Maipita I.
AU - Fitri Rahmadana M.
PY - 2018
SP - 325
EP - 331
DO - 10.5220/0009902300002480