Ruang Fiskal Daerah Dan Pertumbuhan Ekonomi Kabupaten dan Kota Di Provinsi Kalimantan Selatan

Iqbal Firdaus, R.R. Siri Munawaroh

Abstract


This study aims to find the role of regional fiscal space in the potential economic growth, mediated by capital expenditure. The study was conducted on regency and municipal in Kalimantan Selatan province with an SEM approach. The magnitude of the fiscal space can provide widespread discretion space for the regional executive in developing its regional development potential. The findings of this study prove the existence of the significant influence of fiscal space on economic growth. Adequate fiscal space can create flexibility for local governments, increasing discretion for local executives to encourage creativity and innovation in developing regional opportunities and potentials to foster economic growth. The effective utilization of fiscal space is also affected by capital expenditure. Evident from the findings of this study indicate the role of capital expenditure meditation on the influence of regional fiscal space on regional economic growth.

Keywords


Capital expenditure; Potential economic growth; Regional fiscal space.

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