| dc.description.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. | en_US |
