Analisis Pengaruh Penerimaan Daerah terhadap Perkembangan Ekonomi Kota Medan

Abstract

This research aimed to know the development of regional income in connection to economic development in Medan City. Especially this research is aimed to analyse the influence of own revenue, balancing fund, other legal income and the running of regional autonomy to economic development in Medan City. This research is using secondary data in form of time series year 1985 - 2004, which is come from Finance Board, and Statistic Board Center of Medan City. The analysis using Ordinary Least Square Method (OLS). This research finds out that regional income has significantly influence to economic development of Medan City with significant level of 99 percent, and coefficient determination (R2 ) 95,83 percent. Partially, analysis result shows that own revenue has negatively influence and significant to Medan City's economic development, while own revenue in previous year, balancing fund, and other legal income has positively influence and significant to Medan City's economic development. It means that the economic development of Medan City increase along with the increasing of Medan City's income from balancing fund and other legal income. According to estimated result it is known that the running of regional autonomy has positively influence and significant to the development of Medan City. It also known that the economic development is getting better after the running of regional autonomy. According the results, it is suggested that levying of new taxes and retribution should be considered carefully, so it will not generate chaos in society which is in time it could cause distortion in regional economic activities. Government Regional Regulation would be better directed to increase regional income in short term by optimizing existing regional taxes and retribution. Medan City Government hopefully could increase balancing fund by increasing the proportion of acceptance share holder and increasing DAU proportion minimal 25 percent from the budget.