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Masithah, D., & Rahmawati, F. (2024). The Effect of Local Government Characteristics on GRDP in Indonesia during the Pandemic Period. KnE Social Sciences, 9(21), 552–566. https://doi.org/10.18502/kss.v9i21.16761

https://doi.org/10.18502/kss.v9i21.16761

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authors

  • Dewi Masithah

    Dewi Masithah

    Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang
    https://orcid.org/0009-0006-6219-2951
  • Farida Rahmawati

    Farida Rahmawati

    Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang

Published Date

  • Jul 31, 2024

The Effect of Local Government Characteristics on GRDP in Indonesia during the Pandemic Period

KnE Social Sciences / The 3rd International Conference on Business, Economics, and Sustainability Science (BESS 2023) / Pages 552–566

Abstract

This research aims to analyze the influence of local government characteristics, specifically Gross Regional Domestic Product (GRDP), on Indonesia during the pandemic. Economic growth is a key component of the Sustainable Development Goals (SDGs), as outlined in point eight of the 17 SDG goals. The Covid-19 pandemic has significantly impacted local government administration, leading to a decrease in regional income in some regions of Indonesia. This research employs a quantitative approach, utilizing multiple linear regression analysis for the analysis. The results reveal that the variables of area size and the number of Regional Apparatus Organizations (OPD) do not have a significant impact on economic growth in Indonesia. In contrast, the variable of Regional Original Income (PAD) demonstrates a significant influence on Indonesia’s economic growth. Moreover, when considered simultaneously, the area size, the number of OPD, and PAD collectively exert a significant impact on the economic growth in Indonesia during the pandemic. These findings suggest that local governments should allocate greater efforts and resources to foster economic growth, recognizing it as a crucial element for achieving the SDGs in Indonesia.


Keywords: economic growth, local government characteristics, Sustainable Development Goals (SDGs)

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