Analisis Pengaruh Pendapatan Asli Daerah dan Dana Transfer terhadap Pertumbuhan Ekonomi Pemerintah Kota di Provinsi Sumatera Utara

Abstract

This research aims to find the effect of Locally-Generated Revenue (PAD) and transfer funds, namely public Allocation Fund (DAU), Special Allocation Fund (DAK) and Revenue-Sharing Fund (DBH) on economic growth of of municipal governments in North Sumatera Province. The research uses secondary data collected from regional revenue and Expenditure Budget (APBD) report of North Sumatera municipal government. Data are collected from the year of 2006 until 2020. The research objects consist of 8 cities in North Sumatera Province. The research uses panel data analysis method and Fixed Effect Model (FEM) analysis model. The results indicated that PAD partially had a positive and significant effect on economic growth of municipal governments in North Sumatera Province. transfer funds in the form of DAU has a positive and insignificant effect on economic growth, DAK has a positive and significant effect on economic growth level, and DBH has a negative and significant effect on economic growth of municipal governments in North Sumatera Province. Simultaneously, both PAD and transfer funds (DAU, DAK, and DBH) have a positive and significant effect on economic growth of municipal governments in North Sumatera Province.