| Summary: | The present research aimed to partially and simultaneously examine and analyze
the impacts of local original revenue, capital expenditure and employee
expenditure on local economic growth of district/municipality local governments
in East Kalimantan Province.
Research population and samples involved 13 (thirteen) district/
municipality local government in East Kalimantan Province. Multiple Linear
Regression approach was used as analysis tool. To examine the result of Multiple
Linear Regression analysis, first of all, the quality test of observation instrument,
data normality test, and classical assumption test were carried out. The SPSS
Statistics 17.0 software was used in data processing.
This research proved that local original revenue, capital expenditure and
employee expenditure, simultaneously, provided positive and significant impacts
on economic growth of district/municipality local governments in East
Kalimantan Province. Partially, variable capital expenditure had positive and
significant impacts on economic growth, while local original revenue and
employee expenditure, partially, did not provide any impact on the economic
growth. This research was expected to become the information and evaluation
materials of implemented budgeting system, particularly in the decision making
related to the development and allocation process of capital expenditure and
employee expenditure, and the required local original revenue to provide optimal
benefit for local economic growth.
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