The Effect of Public Consumption, Grdp, Hdi, Investment, Regional Expenditure on Pad and its Implications on Education and Life Expectancy in Indonesia

Wali Akbar; Heru Subiyantoro; Machfud Sidik; Dedi Suwardi Bahagia

doi:10.59890/ijels.v3i8.139

Authors

Wali Akbar Universtas Borobudur
Heru Subiyantoro Universitas Borubudur
Machfud Sidik Universitas Borubudur
Dedi Suwardi Bahagia Universitas Borubudur

DOI:

https://doi.org/10.59890/ijels.v3i8.139

Keywords:

Consumption, PAD, GRDP, HDI, Investment, Regional Spending, Education, and Life Expectancy.

Abstract

Regional Original Income (PAD) is a crucial indicator reflecting a region's ability to manage its resources and economic potential. Various factors, such as public consumption, Gross Regional Domestic Product (GRDP), Human Development Index (HDI), investment, and regional spending, interact and influence each other in increasing PAD. This study uses a quantitative approach with panel data regression analysis to analyze secondary data from the Central Statistics Agency (BPS), the Ministry of Finance, and other relevant institutions. The independent variables studied are consumption, GRDP, the Human Development Index (HDI), investment, and regional spending, while the dependent variable is PAD in Indonesia. The implications for education and life expectancy are then examined. The analysis shows that the studied macroeconomic variables have a significant positive impact on local revenue (PAD). The implications of this finding suggest that increasing PAD can improve education levels and life expectancy in Indonesia. The finding that PAD impacts Education and AHH indicates that strong regional fiscal capacity is an important prerequisite for investment in social sectors that improve the quality of life of the community.

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