Analysis of The Influence of Regional Income and Expenditure and Human Development Index on Economic Growth in The District / City of Aceh Province

Ainisyfak Ainisyfak; Yuliana Yuliana; Isthafan Najmi; Yuni Ayu Safitri

doi:10.30601/humaniora.v9i2.7042

Analysis of The Influence of Regional Income and Expenditure and Human Development Index on Economic Growth in The District / City of Aceh Province

Ainisyfak Ainisyfak, Yuliana Yuliana, Isthafan Najmi, Yuni Ayu Safitri

Abstract

This study aims to analyze the effects of Regional Revenue, Regional Expenditure, and the Human Development Index (HDI) on Economic Growth (Non-Oil and Gas GRDP) in 23 regencies/municipalities of Aceh Province during the period 2017–2023. A quantitative approach with panel data regression was employed, combining time series and cross-sectional data. The best estimation model was selected through Chow, Hausman, and Lagrange Multiplier tests. The findings reveal that, partially, Regional Revenue, Regional Expenditure, and HDI have a positive and significant impact on regional economic growth. Simultaneously, the three independent variables significantly influence economic growth, with a coefficient of determination (R²) of 76,9%. This indicates that 76,9% of the variation in economic growth is explained by the model, while the remaining 23,1% is influenced by other factors beyond the scope of this study. These results highlight the importance of strengthening regional revenue, ensuring efficient government spending, and enhancing human capital development to promote sustainable economic growth in Aceh. The study contributes to regional economic literature and provides valuable insights for policymakers in designing fiscal and development strategies, while also serving as a reference for future research.

Keywords

Regional revenue; Regional expenditure; Human development index

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DOI: https://doi.org/10.30601/humaniora.v9i2.7042

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