Analyzing the Effect of Government Spending on Economic Growth in Riau Province, Indonesia
DOI:
https://doi.org/10.56225/gjbesd.v1i1.4Keywords:
government spending, economic growth, Riau provinceAbstract
The main driver of national income is government spending. Thus, several countries in the world choose to increase government spending for improving the country's economy. However, government spending also has its pros and cons for the regional economy. Of these, the current study examines the effect of government spending on economic growth in Riau Province. The method used is a quantitative method, namely descriptive analysis and classical assumption test. Based on the methods and data analysis that has been done, it can be concluded that simultaneously (F test) government spending on economic growth in Riau Province has a significant effect with a significant value of 0.000b with an R squared value of 78.50 percent. The regression model is normally distributed by performing the One-Sample Kolmogorov-Smirnov test with a significant value shown, namely 0.067c. There is no multicollinearity between variables with the indicated tolerance value 1.0000 > 0.10 and VIF 1.000 < 10. The model also does not occur heteroscedasticity by doing the Glejser test where the significant value is 0.603. In addition, the regression model also has no autocorrelation with the Durbin-Watson value being 2.355. Where this value lies between dL and (4-dU).
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