Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia

Research Article

Sensitivity of Regional Income and Economic Changes to Medan City Regional Budget

Download45 downloads
  • @INPROCEEDINGS{10.4108/eai.22-9-2022.2337479,
        author={Wahyu Ario Pratomo and Wahyu Sugeng Imam Soeparno and Arif  Rahman},
        title={Sensitivity of Regional Income and Economic Changes to Medan City Regional Budget},
        proceedings={Proceedings of the 3rd Economics and Business International Conference, EBIC 2022, 22 September 2022, Medan, North Sumatera, Indonesia},
        publisher={EAI},
        proceedings_a={EBIC},
        year={2024},
        month={4},
        keywords={sensitivity regional income growth},
        doi={10.4108/eai.22-9-2022.2337479}
    }
    
  • Wahyu Ario Pratomo
    Wahyu Sugeng Imam Soeparno
    Arif Rahman
    Year: 2024
    Sensitivity of Regional Income and Economic Changes to Medan City Regional Budget
    EBIC
    EAI
    DOI: 10.4108/eai.22-9-2022.2337479
Wahyu Ario Pratomo1, Wahyu Sugeng Imam Soeparno1,*, Arif Rahman1
  • 1: Universitas Sumatera Utara
*Contact email: wahyusugeng@usu.ac.id

Abstract

The purpose of this study was to analyze the sensitivity of economic changes and the main instrument of regional income to the Medan City Regional Budget. The estimation results show that the research variables in the model are able to explain changes in the Medan City APBD by 92.5%. The value of the F-statistical test illustrates that all variables jointly affect the Medan City APBD significantly. The partial test shows that PAD, provincial transfers, central transfers, and economic growth have a significant positive effect on the Medan City Regional Budget. The highest level of significance is in the PAD instrument and provincial transfers, which are below 1 percent alpha. While the central transfer has a degree of error below 10 percent. The results of the study conclude that the PAD instrument has the highest sensitivity to changes in the APBD, while central transfers have the lowest sensitivity of the three main regional revenue instruments.