Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia

Research Article

The Revenue and Regional Expenditure in Aceh Province: Vector Error Correction (VEC) Approach

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  • @INPROCEEDINGS{10.4108/eai.12-11-2018.2288824,
        author={Asnawi  Asnawi and Naufal  Bachri and Rasyidin  Rasyidin and Aiyub  Aiyub},
        title={The Revenue and Regional Expenditure in Aceh Province: Vector Error Correction (VEC) Approach},
        proceedings={Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={ICOFEB},
        year={2019},
        month={10},
        keywords={economic growth revenue regional expenditure},
        doi={10.4108/eai.12-11-2018.2288824}
    }
    
  • Asnawi Asnawi
    Naufal Bachri
    Rasyidin Rasyidin
    Aiyub Aiyub
    Year: 2019
    The Revenue and Regional Expenditure in Aceh Province: Vector Error Correction (VEC) Approach
    ICOFEB
    EAI
    DOI: 10.4108/eai.12-11-2018.2288824
Asnawi Asnawi1,*, Naufal Bachri2, Rasyidin Rasyidin3, Aiyub Aiyub4
  • 1: Department of Economics, Malikussaleh University, Indonesia
  • 2: Department of Management Science, Malikussaleh University, Indonesia
  • 3: Department of Political Science, Malikussaleh University, Indonesia
  • 4: Department of Public Administration, Malikussaleh University, Indonesia
*Contact email: asnawi@unimal.ac.id

Abstract

The purpose of this research is to analyze the correlation between revenue and regional expenditure in Aceh Province. The research uses time series data for the period 1985 to 2017. The Vector Error Correction Model (VECM) are used to analyze the correlation between revenue and regional expenditure. The results show that the revenue and regional expenditure affect economic growth in the long run. Moreover, in the short run, it shows that the economic growth also affects revenue growth and regional expenditure in Aceh Province. In regard to the finding, there is causality effect between economic growth, revenue, and regional expenditure.