Government expenditure and investment on economic growth in Merauke Regency

Abstract

Abstract Developing regions can be seen from economic activities that experience economic growth every year. This can be observed from the activities of economic sectors that continue to develop. The purpose of this paper is to find out the influence level of government expenditure variable, investment variable, and economic growth. As for the data used in this research are government expenditure, investment, and economic growth to observe the direct effect of the government expenditure variable (x1), investment variable (x2) and economic growth (y). The effect of government expenditure (x1) on economic growth (y) is positive and significant with a t value of 9.449 and Coefficient value of 0.379. While the direct effect of the investment variable (x2) on economic growth (y) shows a positive but not significant effect. The conclusion is that there is a relationship between government expenditure on economic growth that has a positive and significant effect, while investment has no significant impact on economic growth.

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