PENGARUH PENGELUARAN PEMBANGUNAN DAN INVESTASI TERHADAP PERTUMBUHAN EKONOMI PROVINSI SUMATERA UTARA

Abstract

ABSTRACT Dinda Anisa, 71190311013 , The Influence of Development and Investment Expenditures on Economic Growth in North Sumatra Province Economic growth is a measure of the economic development or progress of a country or region because it is closely related to the economic activities of society, especially in terms of increasing the production of goods and services. It is hoped that this increase in production will have an effect that can improve community welfare. Development expenditure is one component that can determine the level of economic growth. Development expenditure is measured by the total of routine expenditure and regional government development expenditure. Investment can be interpreted as capital investment expenditure to purchase additional production equipment to increase the ability to produce goods or services available in the economy. The formulation of the problem in this thesis is whether development expenditure has an effect on economic growth in North Sumatra Province, whether investment has an effect on economic growth in North Sumatra Province. The analysis technique used is data analysis in this research using a descriptive analysis method which is based on depictions that support the analysis. The results of this research show that partially the government expenditure variable has a significant negative effect on economic growth in North Sumatra Province with a significance value of 0.003<0.05. Based on partial test results, it was found that the investment variable had a positive effect on economic growth in North Sumatra Province with a significance value of 0.32>0.05. Based on the results of simultaneous test calculations, it is known that the two variables of government spending and investment simultaneously have a positive and significant influence on economic growth in North Sumatra Province with a significant value of 0.030<0.05. Based on the results of multiple linear regression research, it can be seen that the government expenditure variable is the dominant variable on the influence of economic growth in North Sumatra Province Keywords: Development, Investment, Economic Growth