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

Asnawi Asnawi; Naufal Bachri; Rasyidin Rasyidin; Aiyub Aiyub

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

Download488 downloads

Cite: BibTeX Plain Text

@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.

Keywords: economic growth revenue regional expenditure

Published: 2019-10-25
Publisher: EAI

: http://dx.doi.org/10.4108/eai.12-11-2018.2288824