TY - JOUR AU - Dwi Widyastuti AU - Farida Rahmawati PY - 2020/04/23 Y2 - 2024/03/28 TI - The Effect of Fiscal Balance Funding on Regional Economic Growth: Evidence from East Java Province Period 2015-2017 JF - KnE Social Sciences JA - KSS VL - 4 IS - 7 SE - Articles DO - 10.18502/kss.v4i7.6860 UR - https://knepublishing.com/index.php/KnE-Social/article/view/6860 AB - This research aims to determine the effect of Fiscal Balance Funding on regional economic growth in East Java Province period 2015-2017. The data used in this research are Local Own Revenue (Pendapatan Asli Daerah), General Allocation Fund (Dana Alokasi Umum), Specific Allocation Fund (Dana Alokasi Khusus) and Village Fund (Dana Desa), Capital Expenditure (Belanja Modal) and Regional Gross Domestic Bruto (Produk Domestik Regional Bruto) from all district in East Java Province. The data used are obtained from the Directorate General of Fiscal Balance and the Central Bureau of Statistics. The sample in this study was 30 districts/cities in East Java Province and analytical method used is multiple linear regression analysis and path analysis. According to the calculation results based on the magnitude of the direct influence coefficient of the five variables shows that there is an indirect effect of District Own Revenue and General Allocation Fund on Regional Economic Growth through Capital Expenditure. Based on these results, the researchers provide suggestions that it is expected to allocate Special Allocation Fund for expenditures that have high impact on productive activities such as capital expenditure that can support regional economic growth.Keywords: Fiscal Balance Funding, Capital Expenditurel, Regional Economic Growth ER -