Analisis Pengaruh Kinerja Keuangan Daerah terhadap Pertumbuhan Ekonomi dengan Alokasi Belanja Modal sebagai Variabel Intervening pada Kabupaten/Kota Provinsi Sumatera Utara

Abstract

This study aims to examine the effect of financial performance on economic growth, with capital expenditure allocation as an intervening variable in the local governments of regencies/cities in North Sumatra Province. The research sample consists of 33 regencies/cities within the province. The financial performance variables measured include efficiency, effectiveness, autonomy, and fiscal decentralization. The data were analyzed using path analysis with the Eviews program, based on secondary panel data sourced from the regional budgets (APBD) of the regencies/cities in North Sumatra Province for the period 2018-2022. The results show that efficiency has a positive and significant effect on economic growth, while effectiveness also has a positive and significant effect. In contrast, autonomy has a negative and insignificant effect, and fiscal decentralization has a positive but insignificant effect on economic growth. The Regarding indirect effect, capital expenditure allocation is found to mediate only the relationship between efficiency and economic growth. Meanwhile, the variables of effectiveness, autonomy, and fiscal decentralization are not mediated by capital expenditure allocation in their effect on economic growth.