The Effect of Regional Original Income and Regional Financial Performance on Economic Growth in North Sumatera Regency

Abstract

The purpose of this study is to examine the effect of regional own-source revenue and financial performance of local governments on economic growth in the regencies / cities of North Sumatra. The population is 33 districts / cities (25 districts and 7 cities) in North Sumatra. Sample (25 districts and 7 cities). The data consists of GDP (Gross Regional Domestic Product) with constant prices to find out economic growth in the district / city of North Sumatra, realization of PAD (regional income) and data on local government financial performance. The data was obtained from the Central Statistics Agency of North Sumatra and analyzed using linear regression analysis and statistical tests t. The results showed that some of the PAD had a positive and significant effect on economic growth and government financial performance variables had a positive and significant effect on economic growth in the regencies / cities of North Sumatra.