Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023

This study investigates the effect of corporate investment and government expenditure on regional original revenue (Pendapatan Asli Daerah or PAD) in Central Java Province during the period of 2021 to 2023. The research specifically tests the hypotheses that (1) corporate investment has a positive...

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Main Authors: Rif'an Frandika Adi Ghufron, Zulfikar Zulfikar
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-04-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://e-journal.uac.ac.id/index.php/iijse/article/view/6650
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author Rif'an Frandika Adi Ghufron
Zulfikar Zulfikar
author_facet Rif'an Frandika Adi Ghufron
Zulfikar Zulfikar
author_sort Rif'an Frandika Adi Ghufron
collection DOAJ
description This study investigates the effect of corporate investment and government expenditure on regional original revenue (Pendapatan Asli Daerah or PAD) in Central Java Province during the period of 2021 to 2023. The research specifically tests the hypotheses that (1) corporate investment has a positive and significant effect on regional revenue, and (2) government expenditure has a positive and significant effect on regional revenue. Using a multiple linear regression model, the analysis incorporates classical assumption tests, including normality, multicollinearity, autocorrelation, and heteroscedasticity, alongside statistical evaluations such as R, adjusted R², F-tests, and t-tests, processed using SPSS. The study uses secondary data obtained from government publications and official investment reports at the provincial level. Findings indicate that both corporate investment and government expenditure have a statistically significant positive impact on regional revenue in Central Java. The model shows a relatively high adjusted R² value, confirming a strong explanatory power of the independent variables on the dependent variable. Multicollinearity diagnostics show acceptable Variance Inflation Factor (VIF) values, indicating that multicollinearity is not a concern in the model. These results underscore the vital role of both investment and public expenditure in driving fiscal performance at the regional level.
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publishDate 2025-04-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
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series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-3470b0f032de43b89b6ee3e9ae40b3bf2025-08-20T02:11:34ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-04-018210.31538/iijse.v8i2.6650Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023Rif'an Frandika Adi Ghufron0Zulfikar Zulfikar1Universitas Muhammadiyah Surakarta, Surakarta, IndonesiaUniversitas Muhammadiyah Surakarta, Surakarta, Indonesia This study investigates the effect of corporate investment and government expenditure on regional original revenue (Pendapatan Asli Daerah or PAD) in Central Java Province during the period of 2021 to 2023. The research specifically tests the hypotheses that (1) corporate investment has a positive and significant effect on regional revenue, and (2) government expenditure has a positive and significant effect on regional revenue. Using a multiple linear regression model, the analysis incorporates classical assumption tests, including normality, multicollinearity, autocorrelation, and heteroscedasticity, alongside statistical evaluations such as R, adjusted R², F-tests, and t-tests, processed using SPSS. The study uses secondary data obtained from government publications and official investment reports at the provincial level. Findings indicate that both corporate investment and government expenditure have a statistically significant positive impact on regional revenue in Central Java. The model shows a relatively high adjusted R² value, confirming a strong explanatory power of the independent variables on the dependent variable. Multicollinearity diagnostics show acceptable Variance Inflation Factor (VIF) values, indicating that multicollinearity is not a concern in the model. These results underscore the vital role of both investment and public expenditure in driving fiscal performance at the regional level. https://e-journal.uac.ac.id/index.php/iijse/article/view/6650Government Investment, Government Expenditure, Local Revenue
spellingShingle Rif'an Frandika Adi Ghufron
Zulfikar Zulfikar
Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
Indonesian Interdisciplinary Journal of Sharia Economics
Government Investment, Government Expenditure, Local Revenue
title Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
title_full Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
title_fullStr Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
title_full_unstemmed Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
title_short Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023
title_sort government investment and government expenditure on regional original income of central java province 2021 2023
topic Government Investment, Government Expenditure, Local Revenue
url https://e-journal.uac.ac.id/index.php/iijse/article/view/6650
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AT zulfikarzulfikar governmentinvestmentandgovernmentexpenditureonregionaloriginalincomeofcentraljavaprovince20212023