THE INFLUENCE OF REGIONAL FINANCIAL CAPACITY AND INDEPENDENCE ON ECONOMIC GROWTH IN THE LOWEST REGION OF WEST NUSA TENGGARA PROVINCE IN 2013-2022

Abstract

This study aims to analyze the effect of regional financial capability and independence on economic growth in regencies/cities of West Nusa Tenggara Province partially and simultaneously in 2013-2022. This type of research is descriptive quantitative. The data used is secondary data taken from the Central Bureau of Statistics (BPS) of West Nusa Tenggara Province and the Directorate General of Fiscal Balance (DJPK). Panel data in this study is a combination of cross section and time series data, namely 2 districts (Dompu Regency and North Lombok Regency) and 1 city (Bima City) and time series data (data from 2013-2022). The results of the analysis show that regional financial capacity and regional financial independence partially have a positive and significant effect on economic growth in three regions, namely Bima City, Dompu Regency, and North Lombok Regency in West Nusa Tenggara Province. While simultaneously showing that regional financial capacity and regional financial independence have a positive and significant effect on economic growth in three regions, namely Bima City, Dompu Regency, and North Lombok Regency in West Nusa Tenggara Province.

Keywords: Regional Financial Capability, Regional Financial Independence, Economic Growth