JANUARTI, Indira (2020) CAPITAL EXPENDITURE DETERMINANTS IN CENTRAL JAVA AND EAST JAVA WITH ECONOMIC GROWTH AS MODERATING VARIABLE. Media Ekonomi dan Manajemen, 35 (1). pp. 1-18. ISSN 2503-4464

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Abstract

This study aims to analyze the effect of local own revenue, balance funds and area size on capital expenditure with economic growth as a moderating factor for district/city governments in Central and East Java Provinces. The population in this study are all districts/cities in Central Java and East Java Province. This research uses the census method. The secondary ata used in this study is in the form of 2015-2017 APBD realization reports obtained from the Director-General of Fiscal Balance of the Regional Government, while data on economic growth and area size were obtained from BPS of Central and East Java Provinces. The analysis technique uses structural equation models with Partial Least Square. The results show that regional original income and balance funds have a significant positive effect on capital expenditure in Central and East Java. The area size has a positive and significant effect on capital expenditure for Central Java but not for East Java. Economic growth moderates the effect of regional income on capital expenditure. Economic growth moderates balance funds towards capital expenditure for Central Java but not for East Java. Overall there is no difference in capital expenditure across districts/cities in the two provinces.

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